topic Re: 3.25 APR in Credit Cards

3.25 APR

icloud2525 — Sat, 11 Apr 2015 14:08:54 GMT

Just got a invite from the First National Bank of Omaha. They said "We're changing the game", and boy are they. 3.25 apr is unreal. Does come with $89 annual fee though. Something to think about I suppose. I've never carried balances except on 0% intro offers but it might be worth the AF in case it's ever needed.

Re: 3.25 APR

Anonymous — Sat, 11 Apr 2015 14:56:07 GMT

I would take in a minute, but I often carry a balance..

Re: 3.25 APR

Anonymous — Sat, 11 Apr 2015 14:59:56 GMT

Id rather take the 0 AF 6.25 APR card.

Re: 3.25 APR

galahad15 — Sat, 11 Apr 2015 15:21:55 GMT

I agree with Nixon, would rather take the 6.25% FNBO card with no annual fee. Now, if it were potentially an AF-free card OTOH though, that might be a different story, lol With very few exceptions, I generally almost never apply for cards that carry annual fees. Btw, doesn't the annual fee alone automatically bump the actual APY that would be incurred annually above the base 3.25% APR?

Re: 3.25 APR

TheGardner — Sat, 11 Apr 2015 15:21:19 GMT

If you carry a balance over a few thousand for a year it's cheaper than the no AF ver.

Re: 3.25 APR

TheGardner — Sat, 11 Apr 2015 15:22:33 GMT

Isn't prime 3.25% how is this even possible?

We have finally found a true prime lender guys..

Re: 3.25 APR

jsucool76 — Sat, 11 Apr 2015 15:22:52 GMT

would be a good emergency card but I'm not in the game of paying for a card I maybe might need at some point.

It's like a credit card insurance policy

Re: 3.25 APR

TheGardner — Sat, 11 Apr 2015 15:28:15 GMT

True, may have a low CL to boot making it effectively worthless. Anything under 10k probably not much worth it as you would kill your scores with any real balance.

Re: 3.25 APR

galahad15 — Sat, 11 Apr 2015 15:32:12 GMT

But with the annual free, will the card still be as competitive as the current 3.25% V rate it's at right now, when the prime rate eventually goes up when the Fed raises rates though, as they surely will at some future point? Just curious... (Don't get me wrong, I definitely *love* the advertised 3.25% rate; the AF just makes me a lil cautious if I were ever hypothetically invited to apply for a product like this.)

ETA: FWIW and just for some historical perspective of sorts on the prime rate, wasn't the prime rate set at as high as ~12%, sometime in the 1980's?

Re: 3.25 APR

Anonymous — Sat, 11 Apr 2015 15:35:06 GMT

No AF 6.x% I'd keep as an emergency card. 3.25% is only useful if you don't PIF, which is problematic for other reasons.

Re: 3.25 APR

icloud2525 — Sat, 11 Apr 2015 15:40:52 GMT

@galahad15 wrote:
But with the annual free, will the card still be as competitive as the current 3.25% V rate it's at right now, when the prime rate eventually goes up when the Fed raises rates though, as they surely will at some future point? Just curious... (Don't get me wrong, I definitely *love* the advertised 3.25% rate; the AF just makes me a lil cautious if I were ever hypothetically invited to apply for a product like this.)

ETA: FWIW and just for some historical perspective of sorts on the prime rate, wasn't the prime rate set at as high as ~12%, sometime in the 1980's?

Just looked it up. Actually hit 21.5 in December of 1980. Though it has stayed at 3.25 since the end 2008.

Re: 3.25 APR

leoment — Sat, 11 Apr 2015 15:42:50 GMT

The 3.25% APR is amazing, but not when coupled with an $89 AF. If they cut the AF to even $40, then I'd say this card would be worth applying for.

Still hoping they are keeping the 6.25% card around - they still have it featured on a banner on their website, so maybe they'll allow apps again?

Re: 3.25 APR

TheGardner — Sat, 11 Apr 2015 15:43:22 GMT

Card limit and balances carried would have to be over say 3k to make the AF worth it. And that's still not even close to 3% closer to 6ish I think (not going to do the math). If it is a 3 k limit card this isn't going to work. 5k your still at 60% CL UTIL..

10k you would be at 30% but you still have the issue of it being 6% still not the 3% you bargain for.. To get the effective rate down your balance would have to be pretty high, like maybe 10k to bring you around 4% (again not going to do the math). If you got a decent limit (10k) you would be maxed out.. So you would need min 15k line or preferably 20k which would still hurt your scores as you would be at 66% or 50% respectively..

Bottom line, after some thought it's kind of a bait and switch. But with the right CL and balance it could beat most rates just don't expect to get it under say 5% for most reasons above.

Re: 3.25 APR

galahad15 — Sat, 11 Apr 2015 15:46:01 GMT

Many thanks for providing the helpful prime rate info icloud!

Re: 3.25 APR

galahad15 — Sat, 11 Apr 2015 15:49:15 GMT

-Still hoping they are keeping the 6.25% card around - they still have it featured on a banner on their website, so maybe they'll allow apps again?-

Very interesting, after re-checking, I think the banner ad on their FNBO landing page currently says something about the 6.25% V offer being a time-limited promotion good until May 31, 2015?

Re: 3.25 APR

Anonymous — Sat, 11 Apr 2015 16:01:31 GMT

Has anyone actually called and asked if they will reduce the AF?

Secondly, does anyone know of this creditor has a history of lowering
APR's occasionaly? Re the 6% no AF one..

Re: 3.25 APR

galahad15 — Sat, 11 Apr 2015 16:10:13 GMT

-Secondly, does anyone know of this creditor has a history of lowering APR's occasionaly? Re the 6% no AF one..-

Not sure about the 6.25% V card specifically, but I do have another FNBO Maximum Rewards VISA card with the same issuer. A few years ago, I was able to successfully negotiate an APR decrease on that card I have with them from 11.24% V to 10.99% V.

Re: 3.25 APR

itguy_65 — Sat, 11 Apr 2015 17:22:51 GMT

I have this card, and it works for me. I moved a loan that I have had from my worse credit days that was at 11.5%, that I could pay by credit card, and I am paying over time. Aagain, I don't preach that it works for everyone, but does work for my situation. I got a high enough CL that my UTIL on that card was under 50% initially with the loan moved, and got a 27% CLI after 6 months, so now under 30% UTIL on that card. That said, I will think about closing that card, or asking for the annual fee to be waived, once I get to the one year point or balance paid off. Yes, I have a bunch of 0% offers, and I could probably pay off the balance when a 0% offer expired, but I didn't want to worry about that one balance, for now, even though I am paying double the MP.

Re: 3.25 APR

Themanwhocan — Sat, 11 Apr 2015 18:50:46 GMT

http://www.magnifymoney.com/blog/consumer-watchdog/first-national-bank-omaha-prime-for-life/

Re: 3.25 APR

Anonymous — Sat, 11 Apr 2015 18:52:17 GMT

I like it, and I think itd be acceptable with a $50 AF and $25,000 CL.