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APR after 15 months

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APR after 15 months

I got a new Amex card and was checking the APR after 15 months. What does this mean exactly? 

 

"After that, your Goto APR will be a variable rate of the Prime Rate(5.50%) + 18.74%, currently 24.24%". So does this mean my APR will be 24.25% after 15 months?

Message 1 of 8
7 REPLIES 7
New Contributor

Re: APR after 15 months


@Seezer wrote:

I got a new Amex card and was checking the APR after 15 months. What does this mean exactly? 

 

"After that, your Goto APR will be a variable rate of the Prime Rate(5.50%) + 18.74%, currently 24.24%". So does this mean my APR will be 24.25% after 15 months?



Yes, and if interest rates go up so will yours.
 

 

I know you didn't ask but i'm going to put my 2 cents in, you should never have to worry about interest rates because you should be paying your bill in full and never be paying interest. I only started building credit so I don't have many cards but I honestly don't know the interest rate or the due date on any of my cards. Once a week I login to all my accounts, check to make sure everything is correct and pay the current balance. Thats my way to avoid paying interest and late fees.


Message 2 of 8
Frequent Contributor

Re: APR after 15 months

Ok. Thanks.

Message 3 of 8
Established Contributor

Re: APR after 15 months


@hernaemm90 wrote:

@Seezer wrote:

I got a new Amex card and was checking the APR after 15 months. What does this mean exactly? 

 

"After that, your Goto APR will be a variable rate of the Prime Rate(5.50%) + 18.74%, currently 24.24%". So does this mean my APR will be 24.25% after 15 months?



Yes, and if interest rates go up so will yours.
 

 

I know you didn't ask but i'm going to put my 2 cents in, you should never have to worry about interest rates because you should be paying your bill in full and never be paying interest. I only started building credit so I don't have many cards but I honestly don't know the interest rate or the due date on any of my cards. Once a week I login to all my accounts, check to make sure everything is correct and pay the current balance. Thats my way to avoid paying interest and late fees.



I strongly disagree. Yes, one should always strive to pay off their cards in full. However, don't forget the primary purpose of a credit card is  for loans. Not points. One should take full advantage of 0% bank loans while your money is earning money. Securing the lowest rate possible is important to have for emergencies. 

FICO- Experian: 797, TransUnion: 781, Equifax: 804 (Updated Monthly)
Message 4 of 8
Frequent Contributor

Re: APR after 15 months


@Seezer wrote:

I got a new Amex card and was checking the APR after 15 months. What does this mean exactly? 

 

"After that, your Goto APR will be a variable rate of the Prime Rate(5.50%) + 18.74%, currently 24.24%". So does this mean my APR will be 24.25% after 15 months?


Goto APR means the APR that you end up with after any introductory/promotional rates expire. The prime rate is three percentage points more than the federal funds rate https://en.wikipedia.org/wiki/Prime_rate#United_States_and_Canada and the prime rate is currently 5.5%. So your APR will be 24.24% after 15 months, and your APR (like almost all credit cards) can/will fluctuate with the prime rate.

Credit Scores: (FICO 8) 832 Experian December 2019, 824 TransUnion December 2019 | (FICO 9) 847 Equifax January 2020
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Message 5 of 8
New Contributor

Re: APR after 15 months


@Credit_hawk wrote:

@hernaemm90 wrote:

@Seezer wrote:

I got a new Amex card and was checking the APR after 15 months. What does this mean exactly? 

 

"After that, your Goto APR will be a variable rate of the Prime Rate(5.50%) + 18.74%, currently 24.24%". So does this mean my APR will be 24.25% after 15 months?



Yes, and if interest rates go up so will yours.
 

 

I know you didn't ask but i'm going to put my 2 cents in, you should never have to worry about interest rates because you should be paying your bill in full and never be paying interest. I only started building credit so I don't have many cards but I honestly don't know the interest rate or the due date on any of my cards. Once a week I login to all my accounts, check to make sure everything is correct and pay the current balance. Thats my way to avoid paying interest and late fees.



I strongly disagree. Yes, one should always strive to pay off their cards in full. However, don't forget the primary purpose of a credit card is  for loans. Not points. One should take full advantage of 0% bank loans while your money is earning money. Securing the lowest rate possible is important to have for emergencies. 


We'll have to agree to disagree

Message 6 of 8
Valued Contributor

Re: APR after 15 months


@Credit_hawk wrote:

@hernaemm90 wrote:

@Seezer wrote:

I got a new Amex card and was checking the APR after 15 months. What does this mean exactly? 

 

"After that, your Goto APR will be a variable rate of the Prime Rate(5.50%) + 18.74%, currently 24.24%". So does this mean my APR will be 24.25% after 15 months?



Yes, and if interest rates go up so will yours.
 

 

I know you didn't ask but i'm going to put my 2 cents in, you should never have to worry about interest rates because you should be paying your bill in full and never be paying interest. I only started building credit so I don't have many cards but I honestly don't know the interest rate or the due date on any of my cards. Once a week I login to all my accounts, check to make sure everything is correct and pay the current balance. Thats my way to avoid paying interest and late fees.



I strongly disagree. Yes, one should always strive to pay off their cards in full. However, don't forget the primary purpose of a credit card is  for loans. Not points. One should take full advantage of 0% bank loans while your money is earning money. Securing the lowest rate possible is important to have for emergencies. 


Perhaps that's true for you, but not for me.  I'm in it only for the rewards, not for loans over 30 days.  I have savings to cover emergencies.

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Message 7 of 8
Established Contributor

Re: APR after 15 months

You misunderstand me. I’m speaking from the view of the general public;
not my own. We are a fringe group of people in this forum. We are not representative of consumers as a whole. Most consumers use credit as a tool for short term financing not for points and bonuses. The fundemental purpose of lines of credit is to extend credit. Yes, I too always pay in full every month. I’m obsessive about my finances. I also have two years worth of salary in high interest savings accounts for emergencies and rainy day funds. But I recognize I’m not representative of the average consumer. Therefore, I disagree with the notion that interest rates don’t matter. It’s bizarre and short sighted reasoning to think it’s not useful to have low interest rates for an emergency in the future.
FICO- Experian: 797, TransUnion: 781, Equifax: 804 (Updated Monthly)
Message 8 of 8
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