Navy Federal Credit Card Interest Calculation

GZG — Tue, 07 Nov 2023 17:01:48 GMT

I've been checking every month to see if I was eligible for an interest rate decrease for my flagship card that I PC'd from the MoreRewards and every month I've been told the boilerplate: you don't qualify at this time... etc etc.

I asked this month and got a rather interesting conversation paraphrased here:

Navy: You can't request a review until [date] one year since you product changed your MoreRewards into the Flagship.

Me: So product changing, even if it didn't change the 18% interest rate resets the timer for when I can request a reduction in my interest rate?

Navy: When you product change, we do a recalculation of your interest rate, which may have been higher prior to the product change.

But if that interest rate was over 18%, we lower the interest rate down to 18% because interest rates can't be over 18%. So your interest rate may have been lowered, but since it wasn't lower than 18%, you wouldn't have seen it reflected.

Potentially your interest rate could have been calculated at a higher rate but you would only have the highest interest rate of 18%

Me: Is the higher rate that the interest rate was calculated at for my current cards information you have? Is that something you could share with me?

Navy: Let me calculate. For the Flagship it would be 25.24% (8.5 + 16.74), and the cashRewards would be 22.24% (8.5 + 13.74).

Rates are determined and adjusted monthly on the first business day by adding a Margin to the the highest Prime Rate published in the Wall Street Journal on the first day of the previous month.

The Margin is determined based on an evaluation of each member's credit history. The Margin will range from 2.74% to 16.74% based on the product type.

Me: How do you determine this? Specifically? EQ FICO 9, TU FICO 9? Internal Score?

Navy: Not internal score, Credit history... I don't know how or what report specifically.

I had no idea it worked like this. Did anybody know it worked like this? Really rather interesting and if nothing else, now I don't get to bug support every month to see if I can get an interest rate decrease.

Re: Navy Federal Credit Card Interest Calculation

FireMedic1 — Tue, 07 Nov 2023 17:51:51 GMT

"Rates are based on an evaluation of credit history, so your rate may differ. Please see the Terms and Conditions for more details."

https://web.navyfederal.org/assets/rates/printCCRates.php

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Navy Federal Credit Card Interest Calculation

Re: Navy Federal Credit Card Interest Calculation