Re: How to get (Should I get) APR reduction?

Anonymous · ‎01-25-2020

Hi guys. First post. I have several credit cards and mostly good history (really quite good, but that’s part of this post).
In April I applied and got approved for a Chase Sapphire Preferred with a $5,000CL (since automatically raised to $7500), but with an APR of 26.99%. I really thought I was better than that. But apparently I wasn’t because I didn’t find out why until I went to buy a car in August and my offered rate was 6.6% with a credit score over 700.

Turns out my BestBuy card had a 30+ day missed payment on it, putting a big red flag on my account. The amount I forgot to pay which was reported late was about $4. I had been ill, having some sleep relating problems (ended up being narcolepsy) and it really screwed up my life. I spent more time asleep than paying bills.

Anyways no one likes a sob story...I guess except banks. I wrote a thoughtfully worded one page letter to Citi/BestBuy explaining the circumstances and they thankfully removed the mark off my account and my score jumped back up. I’ve since gotten a car loan at 3.2% and a Discover IT card at 13.99% ($10,500 CL).

Do you think if I asked Chase to decrease my APR, they would do it? It’s really just for principal. I never run balances on any of my cards. Or should I focus more on getting my next CL increase. Or just do both? I’m not sure. If I do ask for an APR decrease, what’s the best way to go about it? I haven’t done it before. Does it require a hard hit? Is it worth the trouble if I don’t carry balances?

M_Smart007 · ‎01-25-2020

@Anonymous wrote:
Hi guys. First post. I have several credit cards and mostly good history (really quite good, but that’s part of this post).
In April I applied and got approved for a Chase Sapphire Preferred with a $5,000CL (since automatically raised to $7500), but with an APR of 26.99%. I really thought I was better than that. But apparently I wasn’t because I didn’t find out why until I went to buy a car in August and my offered rate was 6.6% with a credit score over 700.

Turns out my BestBuy card had a 30+ day missed payment on it, putting a big red flag on my account. The amount I forgot to pay which was reported late was about $4. I had been ill, having some sleep relating problems (ended up being narcolepsy) and it really screwed up my life. I spent more time asleep than paying bills.

Anyways no one likes a sob story...I guess except banks. I wrote a thoughtfully worded one page letter to Citi/BestBuy explaining the circumstances and they thankfully removed the mark off my account and my score jumped back up. I’ve since gotten a car loan at 3.2% and a Discover IT card at 13.99% ($10,500 CL).

Do you think if I asked Chase to decrease my APR, they would do it? It’s really just for principal. I never run balances on any of my cards. Or should I focus more on getting my next CL increase. Or just do both? I’m not sure. If I do ask for an APR decrease, what’s the best way to go about it? I haven’t done it before. Does it require a hard hit? Is it worth the trouble if I don’t carry balances?

Welcome to myFico forum and Sorry OP, Chase is not known for APR reductions.

Remedios · ‎01-25-2020

Chase will not reduce APR if request is initiated by consumer.
They will do APR reductions without it being requested, but that's fairly rare occurence.

Recently they were offering APR reductions if consumers accepted PC from Slate to Freedom unlimited, but that was most likely to entice use, as Slate really serves no purpose past the BT.

You can call or send secure message, but I wouldn't hold my breath as far as outcome

Anonymous · ‎01-25-2020

Shoot. That’s why I figured I’d ask. That stinks. Like I said it’s only for the principal of it. None of my cards ever carry a balance, my credit utilization is rarely over 3%. It just makes me mad they made it so high for me, you know?

Remedios · ‎01-25-2020

APR is meant to reflect your risk at the time of approval. You had a late at that time, so your APR reflects that.
While I understand where you're coming from, at least you got an approval.

Plenty of lenders will do APR reductions, Chase just happens to be one that doesnt.
If you dont carry balances, it's irrelevant
If you need to carry a balance, just use a different card.

My experience with them is similar. They were not shy about giving me larger limits, but they've shown their disdain for my credit seeking ways by giving me APR that speaks volumes in terms of risk assessment.

M_Smart007 · ‎01-25-2020

Had to look through My Chase cards, My lowest APR card is 20.74% ... Next one is 22.24%

Oldest card, I guess I was less risk to them years ago!

Still would never carry a Balance at that APR.

AverageJoesCredit · ‎01-26-2020

Chase is a no go for apr reductions by request. Alot of Chase customers seem to get offended by the apr given to them but thats just how Chase rolls. Even with good credit some lenders still give high apr regardless how good ones credit is. In the end though , the best way to get apr redux is to sctually ASK

. Whether a lender does or wiill, if you dont ask you'll never know

. Best of luck on your journey

kdm31091 · ‎01-26-2020

Sorry OP, Chase very rarely budges on APR if ever. I can understand why it may bother you but just use other cards if you actually wanted to borrow money.

Anonymous · ‎01-26-2020

@Anonymous wrote:
Shoot. That’s why I figured I’d ask. That stinks. Like I said it’s only for the principal of it. None of my cards ever carry a balance, my credit utilization is rarely over 3%. It just makes me mad they made it so high for me, you know?

My rates range from 16.5% to 26% or more. If it's not 0% I don't really care what it is.

Take it as a perverse compliment: "We know they're never going to run a balance unless they're in deep financial trouble so we'd better assign a high interest rate."

Deuter · ‎01-26-2020

I succesfully got an APR reduction about 2 days ago with AMEX.

I have 2 cards that have had a 0% APR and later a 17% with Citibank. I think the AA and the Prestige is at 17% which is the minimum for those cards.

Last week i applied to my first Amex and found out the APR i was given with a line of 10K was 26%. I must not lie for me it was kind of offensive ??? I am fairly new to CCs so i quite didn't understand why if i had cards at 16% should i be give one at like 26.XX% . I thought it was really high! Even if i have never carried any balance.

So i phoned up Amex and i explained that i was a bit dissapointed about that APR. They explained to me it was probably because it is my first Amex card. I was put on hold with a team leader and the representative came back to me and told me her team leader approved the APR reduction for me. I was given the 22% percent in total, as i understood. She told me it was something like Prime 4% + something else. Stil is a bit high given my other cards, but i think it depends on lender overall APRs. I didn't know Amex handled higher APR than Citi. So if you want to try an APR reduction to any of your cards make a polite call with your issuer.