topic Re: Can we talk about APRs on rewards cards? in Credit Cards

Can we talk about APRs on rewards cards?

isoldmyatlas — Sun, 18 Jan 2015 20:32:29 GMT

We all know interest rates tend to be higher on credit cards that offer rewards, like cash back, points, etc. My APRs are pretty varied - my lowest is 15.24% on my Discover It and AmEx BCE cards, but those used to be much higher (I ask for reductions every 6 months since it's only a soft pull with them).

My highest, of course, is Capital One Quicksilver at 24.9%. It was my first card so that's why the interest rate is so high. I ask for reductions every 6 months but they can only ever offer me a temporary 6 month reduction...to 20.9%, usually. I never carry a balance so I've never paid interest, but I like playing the "lower my rate" game! It makes me feel better about my credit profile.

So what are your APRs on your rewards cards? How often do you ask for reductions?

Re: Can we talk about APRs on rewards cards?

kdm31091 — Sun, 18 Jan 2015 20:35:45 GMT

I like playing the APR reduction game too. Whether or not you tend to carry balances, it's better to have a lower APR. Peace of mind.

My Amazon Visa and Quicksilver are both 22.9. They're both fairly new so it's not surprising, I had a lot of inq's when I got them. I will work on getting the Quicksilver down later in the year (they said September when the 0% ends I can call them). The Amazon Visa is Chase and they don't seem very willing to lower APRs in general but I will try again after awhile.

BJ's Mastercard is something atrocious like 24% but I don't use it outside of BJ's because there's little point and I PIF definitely right away. Sallie Mae is 20.9%, again supposedly Barclay will lower it over time, and I will keep on them about it.

My "best" APR is Discover, 17.24%. Amex BCE is 18.99. Both Discover and Amex are good about lowering APR every 6 months in my experience if you show good history, so I'm convinced they will continue to drop.

Re: Can we talk about APRs on rewards cards?

isoldmyatlas — Sun, 18 Jan 2015 20:40:26 GMT

@kdm31091 wrote:
I like playing the APR reduction game too. Whether or not you tend to carry balances, it's better to have a lower APR. Peace of mind.

My Amazon Visa and Quicksilver are both 22.9. They're both fairly new so it's not surprising, I had a lot of inq's when I got them. I will work on getting the Quicksilver down later in the year (they said September when the 0% ends I can call them). The Amazon Visa is Chase and they don't seem very willing to lower APRs in general but I will try again after awhile.

BJ's Mastercard is something atrocious like 24% but I don't use it outside of BJ's because there's little point and I PIF definitely right away. Sallie Mae is 20.9%, again supposedly Barclay will lower it over time, and I will keep on them about it.

My "best" APR is Discover, 17.24%. Amex BCE is 18.99. Both Discover and Amex are good about lowering APR every 6 months in my experience if you show good history, so I'm convinced they will continue to drop.

I've had the same experiences with AmEx and Discover - they're really good about doing it, or if there are no offers available, the agent will generally check with their supervisor without me having to ask. I've never been declined for a reduction by either of them. I put most of my spending on my AmEx and Discover cards purely because they're the perfect combo of easy rewards and great customer service.

I also have the Amazon Visa from Chase but I think they require a hard pull to lower an interest rate, if I've heard correctly. So I haven't tried it because of that. I'm not sure about Barclays...they seem to like me but I try not to poke the bear

Re: Can we talk about APRs on rewards cards?

Anonymous — Sun, 18 Jan 2015 20:44:53 GMT

Rewards card and APR are mutually exclusive. What are you carrying balance on a rewards card?

Good Rewards card strategy.
1. Use it
2. Pay in full
3. Collect rewards (tiny)
4. Profit!!!!!

Bad rewards card strategy.
1. Use it
2. Do not pay in full
3. Collect rewards (tiny)
4. Pay interest (lot of)
5. Negative profit.

Re: Can we talk about APRs on rewards cards?

kdm31091 — Sun, 18 Jan 2015 20:46:40 GMT

OK we all know that its silly to carry a balance on a rewards card. We don't need this debate in every thread. The OP even stated they are aware of it.

That said **bleep** happens and you occasionally may carry a balance so why not have a lower APR? You should still care about a lower APR regardless unless you are wealthy.

Yes I get it that interest eats up the rewards. Its common sense. But that wasn't the debate or question the OP presented.

Re: Can we talk about APRs on rewards cards?

chwebb1 — Sun, 18 Jan 2015 20:55:34 GMT

@isoldmyatlas wrote:
We all know interest rates tend to be higher on credit cards that offer rewards, like cash back, points, etc. My APRs are pretty varied - my lowest is 15.24% on my Discover It and AmEx BCE cards, but those used to be much higher (I ask for reductions every 6 months since it's only a soft pull with them).

My highest, of course, is Capital One Quicksilver at 24.9%. It was my first card so that's why the interest rate is so high. I ask for reductions every 6 months but they can only ever offer me a temporary 6 month reduction...to 20.9%, usually. I never carry a balance so I've never paid interest, but I like playing the "lower my rate" game! It makes me feel better about my credit profile.

So what are your APRs on your rewards cards? How often do you ask for reductions?

I ask every 6 months. Here are my APRs (from lowest to highest):

Barclaycard Ring (no rewards) 8%

BoA Better Balance Rewards: 11.99% (Started at 18.99%, BoA reduced to 11.99% in one call)

BoA Cash Rewards: 12.99% (started at 19.99%, BoA reduced to 12.99% in the same call as the BBR).

Barclaycard Sallie Mae: 13.99%

AMEX BCE: 14.99% (started at 17.99%)

Citi Double Cash 15.99% (Started at 17.99%)

Discover It 17.24% (Started at 18.99%)

AMEX Blue Sky 22.24%

I also play the "Lower my APR game" because I see no con to doing so, and if you ever do need to carry a balance (I'd obviously do it on my Ring first), it's better to have the lower APR than to not have it. I am obviously going to work on getting the BCE, Double Cash, Discover, and Blue Sky cards down further, since I'm not yet at the lowest APR offered on those. I'll probably also try to get BoA to lower those APRs further than the lowest advertised APR after a year or so, since I have heard that they will do so.

Re: Can we talk about APRs on rewards cards?

Anonymous — Sun, 18 Jan 2015 20:56:36 GMT

You should always have contingency plan when the sh$%t hits the fan. In your credit card arsenal, you should have a card that has high limit, no BT fee, low APR.

Re: Can we talk about APRs on rewards cards?

mikelo22 — Sun, 18 Jan 2015 21:02:02 GMT

Lowest is my Discover It @ 10.99% APR.

Highest is Citi Double Cash @ 22.99% APR.

Discover was all too eager to give me a great APR, but I can just forget about getting any CLI luv from them apparently.

Re: Can we talk about APRs on rewards cards?

Anonymous — Sun, 18 Jan 2015 21:02:30 GMT

BofA Travel Rewards 7.24%

BofA Cash Rewards 9.9%

NASA Platinum 9.9%

NFCU Flagship 10.9%

Diners Club Elite 13.15%

i'll call Navy in June and request 9.9%

Re: Can we talk about APRs on rewards cards?

Anonymous — Sun, 18 Jan 2015 21:02:35 GMT

08/2014 Chase Sapphire - 15.9% APR

10/2014 Sallie Mae - 20.9% APR

10/2014 Discover - 18.9% APR

10/2014 BCE - 17.9% APR

All except Sapphire are fairly new cards but I do plan to inquire about APR reductions every six months. Maybe not with Sapphire if it requires a HP....

Not that I ever carry a balance or necessarily need the lowest APR but if an offer is available no harm in asking Emergency funds would cover an emergency but again I dont see the harm in asking.

Re: Can we talk about APRs on rewards cards?

isoldmyatlas — Sun, 18 Jan 2015 21:03:19 GMT

@chwebb1 wrote:
@isoldmyatlas wrote:
We all know interest rates tend to be higher on credit cards that offer rewards, like cash back, points, etc. My APRs are pretty varied - my lowest is 15.24% on my Discover It and AmEx BCE cards, but those used to be much higher (I ask for reductions every 6 months since it's only a soft pull with them).

My highest, of course, is Capital One Quicksilver at 24.9%. It was my first card so that's why the interest rate is so high. I ask for reductions every 6 months but they can only ever offer me a temporary 6 month reduction...to 20.9%, usually. I never carry a balance so I've never paid interest, but I like playing the "lower my rate" game! It makes me feel better about my credit profile.

So what are your APRs on your rewards cards? How often do you ask for reductions?
I ask every 6 months. Here are my APRs (from lowest to highest):
Barclaycard Ring (no rewards) 8%
BoA Better Balance Rewards: 11.99% (Started at 18.99%, BoA reduced to 11.99% in one call)
BoA Cash Rewards: 12.99% (started at 19.99%, BoA reduced to 12.99% in the same call as the BBR).
Barclaycard Sallie Mae: 13.99%
AMEX BCE: 14.99% (started at 17.99%)
Citi Double Cash 15.99% (Started at 17.99%)
Discover It 17.24% (Started at 18.99%)
AMEX Blue Sky 22.24%

I also play the "Lower my APR game" because I see no con to doing so, and if you ever do need to carry a balance (I'd obviously do it on my Ring first), it's better to have the lower APR than to not have it. I am obviously going to work on getting the BCE, Double Cash, Discover, and Blue Sky cards down further, since I'm not yet at the lowest APR offered on those. I'll probably also try to get BoA to lower those APRs further than the lowest advertised APR after a year or so, since I have heard that they will do so.

14.99% on the BCE? Good to know! I hope I can get mine that low next time around Looks like BOA really likes you, too. Do they do it with a soft pull? I don't have a BOA card but my SO does, so maybe I should tell him to give it a shot!

Re: Can we talk about APRs on rewards cards?

isoldmyatlas — Sun, 18 Jan 2015 21:04:09 GMT

@Anonymous wrote:
BofA Travel Rewards 7.24%
BofA Cash Rewards 9.9%
NASA Platinum 9.9%
NFCU Flagship 10.9%
Diners Club Elite 13.15%

i'll call Navy in June and request 9.9%

*drools*

Re: Can we talk about APRs on rewards cards?

isoldmyatlas — Sun, 18 Jan 2015 21:08:52 GMT

@mikelo22 wrote:
@Lowest is my Discover It @ 10.99% APR.

@Highest is Citi Double Cash @ 22.99% APR.

Discover was all too eager to give me a great APR, but I can just forget about getting any CLI luv from them apparently.

Aww, keep trying with Discover! They were stingy with me for the first year or so, but now we are BFFs and they always give me APR reductions and CLIs. I usually let the statement cut with a balance and I pay it in full. They seem to like that. I also use ShopDiscover a lot, not sure if that helps though!

Re: Can we talk about APRs on rewards cards?

zsepthenne — Sun, 18 Jan 2015 21:15:18 GMT

@Anonymous wrote:
You should always have contingency plan when the sh$%t hits the fan. In your credit card arsenal, you should have a card that has high limit, no BT fee, low APR.

I fully agree. Think the Barclaycard Ring will be my next goal.

Discover 9.9%

Amex Everyday 12.99%

BoA cash rewards 16.99% (asked for reduction)

CapOne Quicksilver 17.99%

Barclaycard Rewards 19.99%

Sallie Mae 20.99%

Walmart Mastercard 22.99%

Re: Can we talk about APRs on rewards cards?

chwebb1 — Sun, 18 Jan 2015 21:16:17 GMT

@isoldmyatlas wrote:
@chwebb1 wrote:
@isoldmyatlas wrote:
We all know interest rates tend to be higher on credit cards that offer rewards, like cash back, points, etc. My APRs are pretty varied - my lowest is 15.24% on my Discover It and AmEx BCE cards, but those used to be much higher (I ask for reductions every 6 months since it's only a soft pull with them).

My highest, of course, is Capital One Quicksilver at 24.9%. It was my first card so that's why the interest rate is so high. I ask for reductions every 6 months but they can only ever offer me a temporary 6 month reduction...to 20.9%, usually. I never carry a balance so I've never paid interest, but I like playing the "lower my rate" game! It makes me feel better about my credit profile.

So what are your APRs on your rewards cards? How often do you ask for reductions?
I ask every 6 months. Here are my APRs (from lowest to highest):
Barclaycard Ring (no rewards) 8%
BoA Better Balance Rewards: 11.99% (Started at 18.99%, BoA reduced to 11.99% in one call)
BoA Cash Rewards: 12.99% (started at 19.99%, BoA reduced to 12.99% in the same call as the BBR).
Barclaycard Sallie Mae: 13.99%
AMEX BCE: 14.99% (started at 17.99%)
Citi Double Cash 15.99% (Started at 17.99%)
Discover It 17.24% (Started at 18.99%)
AMEX Blue Sky 22.24%

I also play the "Lower my APR game" because I see no con to doing so, and if you ever do need to carry a balance (I'd obviously do it on my Ring first), it's better to have the lower APR than to not have it. I am obviously going to work on getting the BCE, Double Cash, Discover, and Blue Sky cards down further, since I'm not yet at the lowest APR offered on those. I'll probably also try to get BoA to lower those APRs further than the lowest advertised APR after a year or so, since I have heard that they will do so.
14.99% on the BCE? Good to know! I hope I can get mine that low next time around Looks like BOA really likes you, too. Do they do it with a soft pull? I don't have a BOA card but my SO does, so maybe I should tell him to give it a shot!

Yeah, it was a Soft Pull for both BoA and AMEX. I believe the lowest APR on BCE is 12.99%, so that's my goal for that card.

Re: Can we talk about APRs on rewards cards?

Anonymous — Sun, 18 Jan 2015 21:16:25 GMT

My lowest is 14.24% on Blue Sky Preferred.

Most of my Chase APRs run just below 16% and 22.99% on my Freedom (lol)

Re: Can we talk about APRs on rewards cards?

DaveInAZ — Sun, 18 Jan 2015 21:44:47 GMT

@kdm31091 wrote:
OK we all know that its silly to carry a balance on a rewards card. We don't need this debate in every thread. The OP even stated they are aware of it.

That said **bleep** happens and you occasionally may carry a balance so why not have a lower APR? You should still care about a lower APR regardless unless you are wealthy.

Yes I get it that interest eats up the rewards. Its common sense. But that wasn't the debate or question the OP presented.

Thank you. I even asked the OP in a thread in the Approvals forum what APR she was given on her Sallie Mae card and she replied she didn't know & didn't care, and then got a lecture about never carrying a balance on a Rewards card. As the OP more or less said, a 'reasonable APR make me feeel better about my credit profile, and if I ever need to carry a balance I don't want to get stuck paying 22.9% interest. And when I'm getting 1/10th of 1% on my savings, I consider those kind of interest rates inssulting.

I've only asked one creditor for a reduction in APR. That was Merrick bank, and the rep seemed caught off guard by the question. She looked it up and came back with "Customers are not allowed to request an interest rate reduction". OK, that was one of my first CCs post BK, but with a 25.99% APR, I'll sure as heck never carry a balance on it. It's pretty much SD'd. I have less than $50/mo. billed to it from the likes of Netflix, and PIF before the statement so it reports a $0 balance, it helps my AAoA or I'd close it..

My cards:

Cap One QS: $10k CL, 12.9% APR - My newest card, opened 10/14. It gets the most use, in appreciation for nice CL, low APR, 1% rewards, & $100 credit w/$500 useage

Barclays Rewards WMC: $5700 CL, 22.9% APR - Opened 4/12 w/$1500 CL. Nice CLIs, regular BT offers w/low interest, fortunately I don't need them

Merrick Bank Visa: $3100 CL, 26.9% APR - 'nuff said

Best Buy MC: $2k CL, 17.99% APR - Gets me BB Elite Plus by spending $3500/yr. on anything - free expedited shipping w/no min. purchase + bonus pts.

Synchrony Walmart: $2400 CL, 22.9% APR - Only way I'd carry a balance is with 0% finance on large ticket item.

Only card (besides Merrick) that I'm really unhappy with the interest rate is Barclay. After my mortgage refo & car loan app spree next month I'm going to apply for the Sallie Mae, and if I get a 15% or less APR see if I can transfer the Rewards MC CL to it & close the MC.

Re: Can we talk about APRs on rewards cards?

Anonymous — Sun, 18 Jan 2015 21:49:11 GMT

@Anonymous wrote:
BofA Travel Rewards 7.24%
BofA Cash Rewards 9.9%
NASA Platinum 9.9%
NFCU Flagship 10.9%
Diners Club Elite 13.15%

i'll call Navy in June and request 9.9%

7.24 on your Travel Rewards?
Wow now I know what to shoot for!

Re: Can we talk about APRs on rewards cards?

Chris679 — Sun, 18 Jan 2015 21:59:09 GMT

Mine range from 11.24% on Citi Forward to 21.99% on Chase Freedom. I think requesting lower APRs is a great way to satisfy that credit itch.

Re: Can we talk about APRs on rewards cards?

Anonymous — Sun, 18 Jan 2015 22:01:19 GMT

@Anonymous wrote:
You should always have contingency plan when the sh$%t hits the fan. In your credit card arsenal, you should have a card that has high limit, no BT fee, low APR.

I respectfully disagree. Not with the contingency plan thing, but with the idea that this contingency plan needs to be a credit card.

I have 6 months cash fund that i maintain pretty religiously. Another 4-6 months in SP500 index fund stocks that I can sell if things go really badly. That is sufficient to cover my rent, food and necessities for a good amount of time. If for whatever reason things go really badly I am sure I can get a 0% APR card anytime since I maintain a good credit file at all times.

Could something happen that drains all my resources and puts me in a hole? Sure. And North Korea might finally be successful at a nuclear missile launch against the US. What are the odds of either those things happening? In my opinion low enough that i shouldn't worry about them.

This shouldn't be interpreted that what bobisnotmyname said is wrong. For some people that might be a good idea. But for people like me who have no debt and have built up a good stash of cash by being frugal it seems unnecessary.