Interest Rates

[TimoneilD]

So I am on the right track as far as rebuilding my credit goes.  I now have a nice full wallet with reasonable CL's and everything is coming up roses, great.  There's one kink in all this new credit I've been offered, the rates are preposterous!  For somebody hovering around 640 (Wally and Barclay's TU pull), is the 21.74% from a Best Buy MC the best rate I can hope to get in the meantime?  I am not concerned so much about retail cards, I know those are around specifically to drill you with interest (I also pay them down toute de suite).

I have explored a number of options, but it looks like 20+ is where I'll be for the time being.  Anyone have any success stories of shedding their massively overinflated interest rate cards and cashing in on something more reasonable.  I only started getting my house in order in July, does anyone have a reasonable expectation as to when I can expect to at least trend in the right direction?

Thanks in advance!

[FinStar]

---

@TimoneilD wrote:

So I am on the right track as far as rebuilding my credit goes.  I now have a nice full wallet with reasonable CL's and everything is coming up roses, great.  There's one kink in all this new credit I've been offered, the rates are preposterous!  For somebody hovering around 640 (Wally and Barclay's TU pull), is the 21.74% from a Best Buy MC the best rate I can hope to get in the meantime?  I am not concerned so much about retail cards, I know those are around specifically to drill you with interest (I also pay them down toute de suite).

I have explored a number of options, but it looks like 20+ is where I'll be for the time being.  Anyone have any success stories of shedding their massively overinflated interest rate cards and cashing in on something more reasonable.  I only started getting my house in order in July, does anyone have a reasonable expectation as to when I can expect to at least trend in the right direction?

Thanks in advance!

---

Different APRs are assigned to various products by all lenders based on risk.  The higher your scores (>720), the lower your utilization, the longer your AAoA (or established file), the more optimal the outcome when it comes to APRs.  Retail cards backed by some of the majors tend to have by default some of the highest APRs.  I wouldn't expect the Best Buy Card (MC or store version) to be one that would offer anything competitive such as a major bank card.

[myjourney]

---

@FinStar wrote:

---

@TimoneilD wrote:

So I am on the right track as far as rebuilding my credit goes.  I now have a nice full wallet with reasonable CL's and everything is coming up roses, great.  There's one kink in all this new credit I've been offered, the rates are preposterous!  For somebody hovering around 640 (Wally and Barclay's TU pull), is the 21.74% from a Best Buy MC the best rate I can hope to get in the meantime?  I am not concerned so much about retail cards, I know those are around specifically to drill you with interest (I also pay them down toute de suite).

I have explored a number of options, but it looks like 20+ is where I'll be for the time being.  Anyone have any success stories of shedding their massively overinflated interest rate cards and cashing in on something more reasonable.  I only started getting my house in order in July, does anyone have a reasonable expectation as to when I can expect to at least trend in the right direction?

Thanks in advance!

---

Different APRs are assigned to various products by all lenders based on risk.  The higher your scores (>720), the lower your utilization, the longer your AAoA (or established file), the more optimal the outcome when it comes to APRs.  Retail cards backed by some of the majors tend to have by default some of the highest APRs.  I wouldn't expect the Best Buy Card (MC or store version) to be one that would offer anything competitive such as a major bank card.

---

+1 well said 

[Feather_Hat]

i completely understand you since i went through similar thing..

but then i realized that i pay in full every month so i end up not caring abt APR at all...

but just to add a bit more; as soon as my score hit close to late 600s, i app for chase sapphire preferred which has 15.99% APR. i think its decent compare to other cards.

[FinStar]

---

@Feather_Hat wrote:

i completely understand you since i went through similar thing..

but then i realized that i pay in full every month so i end up not carrying abt APR at all...

but just to add a bit more; as soon as my score hit close to late 600s, i app for chase sapphire preferred which has 15.99% APR. i think its decent compare to other cards.

---

Correct.  Some, if not most, of your typical variety of retail-backed CCs (co-branded or store version) can run some frequent financing offers (6, 12, 15, 18, 24 months, etc.) that tend to be attractive for lots of individuals thereby avoiding paying the standard APR if you were to carry a balance under the normal transaction terms - of course this works well as long as the balance is PIF'd by the end of the promotional offer to avoid any deferred interest charges.

As far as CSP, United Explorer, Southwest, British Airways, etc. (to name a few), those products tend to have no APR spread (still a variable APR though) when compared to their other products like Slate, Freedom, Amazon, etc.

[Revelate]

There are products specifically designed for balance carrying; in general rewards != low APR, and vice versa for that matter.

Check out a local credit union or one of the national ones, 640 is right around many of their minimums for unsecured and often they have much lower APR's (and correspondingly lousier rewards) than the typical major issuers.

I wouldn't try to solve everything in one card: get one (or two if required) specifically tailored towards balance carrying if you have to, only real requirements are low APR and large CL.

[TimoneilD]

---

@Revelate wrote:

There are products specifically designed for balance carrying; in general rewards != low APR, and vice versa for that matter.

Check out a local credit union or one of the national ones, 640 is right around many of their minimums for unsecured and often they have much lower APR's (and correspondingly lousier rewards) than the typical major issuers.

I wouldn't try to solve everything in one card: get one (or two if required) specifically tailored towards balance carrying if you have to, only real requirements are low APR and large CL.

---

Good point.  I have every intention of turning my rewards card into the go-to for large purchases.  The only issue with that is that these same large purchases do not rack up the rewards points multipliers I get for everyday stuff!  Sheesh, therein lies the rub I suppose.  So my goal is to built my CL with the rewards card, grab a low APR one from the local CU (where I'm already a member), and go from there.  Thanks for the tips, it is appreciated.

[takeshi74]

---

@TimoneilD wrote:

I only started getting my house in order in July, does anyone have a reasonable expectation as to when I can expect to at least trend in the right direction?

---

I found I went from getting approved for the top APR bracket to the bottom for credit cards when I drastically reduced my utilization.  By drastically I mean from >60% to <10%.  Keep in mind that everyone's credit varies and you may have other restricting factors at play as well.

[Gunnar419]

As your score improves, many of the good general purpose credit cards (not store cards as you know) will lower your APR upon request. Your score has to be pretty high, like upper 700s or more, to get the best rates. But you can gradually lower them over time. You'll just have to ask.

[john398]

I noticed store cards have some of the worst intreast rates, especially GE I really need to get away from using the GE store cards because of the bad rates and no rewards