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Closing High APR Cards - Advice Needed

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Closing High APR Cards - Advice Needed

I've been considering closing out one of my high APR cards and replacing it with a card with a lower APR.  My Capital One QS has an APR of 23% and is almost 4 years aged.  I don't use very often (1) because they won't increase my CL beyond $6.5 k (2) I've tried calling to have my APR reduced, and the answer is always no.

 

Given my current FICO scores, I'm thinking that I may have some flexibility in closing it, even though it is the 2nd most aged card that I own.  I'd like to get some feedback from others who may have gone through this same effort.

 

FYI - my Chase Freedom is the next oldest, also with a 23% APR; however, with the rotating categories point process, I tend to use it more often and wind up either PIF each month or keep the balance low enough where there is little risk of interest charge.  They, too, have told me "No" once before in APR reduction, but could use some advice on other approaches to get it reduced.

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Cards in consideration for 2019:




FICO Scores as of 04/24/2019:


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Message 1 of 15
14 REPLIES 14
Super Contributor

Re: Closing High APR Cards - Advice Needed

Unfortunately, with the lenders you mentioned (Capital One and Chase) there are no other approaches to getting your APR reduced; these lenders just simply don't offer APR reductions (by and large). Chase is just a waste of time to even ask, because they tell everyone the same thing -- that they periodically review APR and if yours "qualifies" to be lowered they will lower it. I have heard of maybe one or two people actually getting it reduced in this sense. But by direct request, no, they won't lower it.

 

Capital One tends to only offer temporary reductions unless you go to the executive office, which is still unlikely to result in your 23% APR becoming anything remotely worth carrying a balance on (i.e. they may knock it down to 21% or something).

 

I'd just resign myself to not carry a balance on the cards, and use other accounts for financing purchases if needed. At 23%, even if these companies offered reductions, it would be a very long time if ever that the APR would become anything worth using to borrow money. Some companies are more flexible than others -- Discover, Amex, and Citi, for example, will generally honor APR reduction requests much more readily (though no guarantees).

Message 2 of 15
Valued Contributor

Re: Closing High APR Cards - Advice Needed


@joesbrat67 wrote:

I've been considering closing out one of my high APR cards and replacing it with a card with a lower APR.  My Capital One QS has an APR of 23% and is almost 4 years aged.  I don't use very often (1) because they won't increase my CL beyond $6.5 k (2) I've tried calling to have my APR reduced, and the answer is always no.

 

Given my current FICO scores, I'm thinking that I may have some flexibility in closing it, even though it is the 2nd most aged card that I own.  I'd like to get some feedback from others who may have gone through this same effort.

 

FYI - my Chase Freedom is the next oldest, also with a 23% APR; however, with the rotating categories point process, I tend to use it more often and wind up either PIF each month or keep the balance low enough where there is little risk of interest charge.  They, too, have told me "No" once before in APR reduction, but could use some advice on other approaches to get it reduced.


Freedom is not meant to carry a balance so the APR shouldn't matter. You can find some people with older Freedom accounts that have lower APRs, but nowadays that's a rare thing.

As far as the QS goes, I wouldn't close it either. Just sock drawer it and let it age. Twice a year throw a cup of coffee on it.

If it was me in a different life I would research and App for a different card to add to the arsenal.

Research well though. You don't want to app and end up with ANOTHER high APR card.

Others might have suggestions as to which card

NFCU Flagship 74k-United Plus Explorer-50k-QS 25k-Avianca 28.8k-Cabelas 24k-Lowes 35k-USAA Amex 32k-FNBO Plat 31k-Numerous others at 20k and below
Message 3 of 15
Valued Contributor

Re: Closing High APR Cards - Advice Needed

Chase and Cap1 are stubborn when it comes to making things affordable like an APR.  Once you're in the number is stuck usually.

 

Discover though is a good option if you want something that grows with you as you move up the FICO scale. It's usually a 50/50 shot at 0% for another 12 months or 3-5% APR reduction when asking them. When your intro period is up 12-15 months you can ask for the APR change.

 

Amex will offer reductions if you ask.  They don't do additional 0% periods though.

 

CU's work with you as you climb the ladder and will lower your APR as you get into new buckets and willing to HP for a CLI / APR reduction.

Message 4 of 15
Established Member

Re: Closing High APR Cards - Advice Needed

If you PIF every month the APR doesn't matter. Closing the cards does you no good since they're your oldest cards. Based on your sig, your scores are great. If you plan on carrying a balance I would apply for another card. You'd get the lowest rates available. 

Message 5 of 15
Frequent Contributor

Re: Closing High APR Cards - Advice Needed

 

Yeah, I get it - PIF is best, but lets get real - not everyone does so.  If someone is asking about a better APR, then that part of the question should be addressed and not just given a pat 'life is perfect - just PIF' canned answer -  OKAY - off my venting soap box and on to the answer.

 

There are better options out there.  If you are concerned about this and have good scores (which you seemed to), then you can get rates with single digits into the low teens.  I recently swapped out my 3 old CC with interest ranging from 24-26% to 10-14%.    Chase Slate became Chase Freedom, Discover became AMEX EDP and ATT MC became NFCU cashrewards.

 

 


6/5/18 EQ-775, TU-778, EX-771
Last HP - 2/27/18 - Gardening as long as possible
Message 6 of 15
Contributor

Re: Closing High APR Cards - Advice Needed

Thank for the feedback.  Any suggestions on possible card(s) to add?  Right now, I don't have a travel-specific rewards card and was considering the Barclay Arrival + WEMC.  Otherwise, I would apply for the new Amazon Prime Rewards Visg Sig, which I know would get plenty of use.

Active Cards:


Sock Drawer Cards:


Cards in consideration for 2019:




FICO Scores as of 04/24/2019:


Peak FICO Scores - Prior 90 Days:


Message 7 of 15
Super Contributor

Re: Closing High APR Cards - Advice Needed


@joesbrat67 wrote:

Thank for the feedback.  Any suggestions on possible card(s) to add?  Right now, I don't have a travel-specific rewards card and was considering the Barclay Arrival + WEMC.  Otherwise, I would apply for the new Amazon Prime Rewards Visg Sig, which I know would get plenty of use.


There's nothing really "travel reward" about the Arrival+  card. It's 2% cash back with an $89 annual fee which you can only redeem for travel. No point in having it beyond a sign up bonus.

 

The Amazon is a good card if you use Amazon heavily but the APR is not likely to be very low (lowest it can possibly be is 14.74 I believe).  Other than having no foreign transaction fee, there's nothing travel related about it -- are you looking for a travel card? Are you looking for a low APR?

 

I fully get that life happens and we cannot always PIF, but with your scores there's no reason to be using 23% APR cards to carry balances. You can get approved for much better.

Message 8 of 15
Community Leader
Mega Contributor

Re: Closing High APR Cards - Advice Needed

Why not go for those super low apr cards offered by the top Credit Unions?. Galahad could make some great suggestions lol, but doesnt Unify, i think this was Western Cu, offer a really low apr card. Im sure you could aldo try Penfed or Navy. Just a thoughtSmiley Happy
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Message 9 of 15
Moderator

Re: Closing High APR Cards - Advice Needed


@AverageJoesCredit wrote:
Why not go for those super low apr cards offered by the top Credit Unions?. Galahad could make some great suggestions lol, but doesnt Unify, i think this was Western Cu, offer a really low apr card. Im sure you could aldo try Penfed or Navy. Just a thoughtSmiley Happy

+1... With your scores you should get the best APR and a decent CL with a CU along with no FTF's.  Many CU's offer very low apr cards along with some of them offering no FTF's and high CL's.   Look at the manwhocan thread/post of low APR credit cards that should be sticked to the top of this forum on helpful links.

Message 10 of 15
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