topic Re: Prime rate rising (APR) in Credit Cards

Prime rate rising (APR)

Isacking97 — Sun, 18 Jun 2017 19:34:45 GMT

I have a Amex ED and BCE

When I got the ED I had a APR of 17.24% but with recent rises my APR is at 17.99 and my BCE at 20.99, and Amex dosent what to give a APR reduction to my ED card, and Im thinking on closing the BCE when my 0% intro ends

What Ideas do you guys have? Tell your comments

This is the second time they rise everyones APR's in under 4 months

Re: Prime rate rising (APR)

Blodreina — Sun, 18 Jun 2017 19:47:43 GMT

Two things

I wouldn't really concern myself with the APR on rewards cards. Realistically, do you expect to carry a balance on the card(s)?
If the APR is your only reason for closing it/them, I would keep them. At least Amex is a lender that will lower APRs; others, like Capital One, keep the same APR for the life of the card.

Re: Prime rate rising (APR)

Gmood1 — Sun, 18 Jun 2017 19:52:14 GMT

Nothing you can do about rising APRs. Best to PIF monthly when possible and keep that 0% rate rolling. The only APRs I pay attention to are Home loans and Auto loans. CC interest can be avoided entirely in most cases.

Re: Prime rate rising (APR)

AverageJoesCredit — Sun, 18 Jun 2017 20:18:55 GMT

Closing a card because they wont lower an apr seems to me to be silly. If the card doesnt fit your spend or lifestyle, sure move on. Amex is not really a lender who lowers Apr too much. Try paying in full and apr will become a mute issue. Just my take on it

Re: Prime rate rising (APR)

galahad15 — Sun, 18 Jun 2017 20:32:48 GMT

Easy solution, IMO: find a CU that offers low-APR cards (preferably fixed-rate cards), and apply for those. True there are no guarantees of course that the CUs won't eventually raise the fixed-rate APRs, but at least you also have the security of knowing that any existing balances incurred before a RJ will stay specifically at their pre-RJ fixed interest rates for the lifetime of the balance. Even a CU with low-APR cards with variable rates are preferable to cards with high APRs. There are at least several CUs that offer cards like these that anyone can app for, some also with rewards included. I very politely and respectfully disagree that APRs are not and are never important, even though FWIW I also do prefer to PIF on almost all of my cards, with only a few rare non-PIF exceptions that are ultra-low APRs.

Re: Prime rate rising (APR)

simplynoir — Sun, 18 Jun 2017 20:35:04 GMT

@CommanderLexa wrote:
Two things

I wouldn't really concern myself with the APR on rewards cards. Realistically, do you expect to carry a balance on the card(s)?
If the APR is your only reason for closing it/them, I would keep them. At least Amex is a lender that will lower APRs; others, like Capital One, keep the same APR for the life of the card.

I ditto what she's saying here. Since they're reward cards you typically wouldn't want to carry a balance on them anyways to maximize your earnings whether through points or cash back. Otherwise you're shorting yourself doing so. And also like she pointed out AMEX is willing to lower your APR on your card(s) in the future; other lenders what APR you get is what you're stuck with more or less. For proof here's a post not too long ago about a user who got an APR reduction automatically from AMEX.

http://ficoforums.myfico.com/t5/Credit-Cards/Amex-Auto-APR-Reduction/td-p/4967149

Re: Prime rate rising (APR)

Isacking97 — Sun, 18 Jun 2017 20:37:30 GMT

@AverageJoesCredit wrote:
Closing a card because they wont lower an apr seems to me to be silly. If the card doesnt fit your spend or lifestyle, sure move on. Amex is not really a lender who lowers Apr too much. Try paying in full and apr will become a mute issue. Just my take on it

It dosent fit my lifestyle (The BCE)

Re: Prime rate rising (APR)

Gmood1 — Sun, 18 Jun 2017 20:54:30 GMT

Yeah if it doesn't fit your lifestyle.. close it. Can you roll the limit over to your other Amex card after a certain amount of time?

Re: Prime rate rising (APR)

Isacking97 — Sun, 18 Jun 2017 20:59:51 GMT

@Gmood1 wrote:
Yeah if it doesn't fit your lifestyle.. close it. Can you roll the limit over to your other Amex card after a certain amount of time?

Yes, When I was approved for the BCE I was approved for 2K so I moved 1K to my ED

Re: Prime rate rising (APR)

AverageJoesCredit — Sun, 18 Jun 2017 21:26:50 GMT

Yeah, thatll do it. No purpose in hanging on to something if its not worth keeping