Variable rate APR credit card? Anyone have experience with these?

[notfred]

I just got an offer for a card at the prime rate + 4.99%, which is currently 8.99%. How high does the prime rate generally go?

It does offer a 0% fixed rate on balance transfers for 12 months, so maybe I'll just use it for that.

 

[dvdrdiscs]

Originally posted by: notfred
I just got an offer for a card at the prime rate + 4.99%, which is currently 8.99%. How high does the prime rate generally go?

It does offer a 0% fixed rate on balance transfers for 12 months, so maybe I'll just use it for that.

so that's like a 14% apr? hm. doesn't seem that great. the prime rate doesn't fluctate that dramatically. most of the time it's a half percentage up or down depending on the economy. in other words you're looking at a card that's going to consistently be around 14%. i would try to go for something in the single digit if you can, assuming you have the credit.

 

[StageLeft]

I would expect prime to go up a good bit if the economy ever does.

 

[notfred]

Originally posted by: dvdrdiscs

Originally posted by: notfred
I just got an offer for a card at the prime rate + 4.99%, which is currently 8.99%. How high does the prime rate generally go?

It does offer a 0% fixed rate on balance transfers for 12 months, so maybe I'll just use it for that.

so that's like a 14% apr? hm. doesn't seem that great. the prime rate doesn't fluctate that dramatically. most of the time it's a half percentage up or down depending on the economy. in other words you're looking at a card that's going to consistently be around 14%. i would try to go for something in the single digit if you can, assuming you have the credit.

I mean that Prime + 4.99 = 8.99, which would make the prime rate itself be 4% right now

 

[BD231]

Prime never moves very far man, it's been in the 3.8 to 3.9 for a LONG time.