What's a typical APR on a credit card these days?

[FeuerFrei]

Chase wants to raise mine to 16% variable. I'm not happy. Been fixed at 10% for more than a decade. I negotiated that rate, and I insist on keeping it there or lower. Only credit account I have.

This is all because I opened a prepaid Chase Liquid card and linked it to my cc. FFFuuuuu..... ML
Time to shop around.

 

[deadlyapp]

14-16% variable based on prime has been my experience. I think I have one that was around 12% before the prime started going up. I also have a few in the 22-24% range (typical for merchant cards).

 

[dullard]

What is this paying interest on a credit card that you are talking about? It should be as foreign as an idea as wanting to change the color of the inside of a chicken's mouth.

 

[highland145]

What is this paying interest on a credit card that you are talking about? It should be as foreign as an idea as wanting to change the color of the inside of a chicken's mouth.

lolol and I agree. Interest on installment loans being completely natural.

 

[FeuerFrei]

14-16% variable based on prime has been my experience. I think I have one that was around 12% before the prime started going up. I also have a few in the 22-24% range (typical for merchant cards).

Thanks. Helpful.

I think I need to transfer my balance - with no transfer fee. It's over $7k. Hopefully pay it off in 18 months. Guess it doesn't have to be a cc, but I'm pissed at Chase and want to drop them, so I need another cc.

Actually, Chase will not change the APR on the current balance.

 

[FeuerFrei]

What is this paying interest on a credit card that you are talking about? It should be as foreign as an idea as wanting to change the color of the inside of a chicken's mouth.

I agree - at 16% to 20% it is ridiculous.

 

[deadlyapp]

Thanks. Helpful.

I think I need to transfer my balance - with no transfer fee. It's over $7k. Hopefully pay it off in 18 months. Guess it doesn't have to be a cc, but I'm pissed at Chase and want to drop them, so I need another cc.

Don't think you'll find anyone who will transfer with no fee. 3% is probably the minimum you'll find. You'll have better luck opening a fixed rate loan to pay it off but may not do better than what you already have.

 

[PricklyPete]

What is this paying interest on a credit card that you are talking about? It should be as foreign as an idea as wanting to change the color of the inside of a chicken's mouth.

This.

 

[FeuerFrei]

Don't think you'll find anyone who will transfer with no fee. 3% is probably the minimum you'll find. You'll have better luck opening a fixed rate loan to pay it off but may not do better than what you already have.

Haven't paid attention to credit cards for many many years. Sucks about the fee. I guess the hope is to find a cc with 0% intro rate on balance transfers for ... let's see ... 18 months, and pay the balance within that time frame.
3% is less than 10% I lose leaving my current balance with Chase for a year. (revised 16% apr is for new purchases after Jan 22, 2018. 16% seems to be the best rate Chase offers nowadays.)

 

[Viper GTS]

https://www.penfed.org/credit-cards/promise-visa-card/

You're welcome.

Viper GTS

 

[deadlyapp]

Haven't paid attention to credit cards for many many years. Sucks about the fee. I guess the hope is to find a cc with 0% intro rate on balance transfers for ... let's see ... 18 months, and pay the balance within that time frame.
3% is less than 10% I get leaving my current balance with Chase for a year. (revised 16% apr is for new purchases after Jan 22, 2018)

Yeah - they'll get you somehow now. If you can't pay it off sooner, then a balance transfer offer is going to be your best bet. I think citi offers the best right now at 21 months but you may have trouble being able to move your entire balance (their cards usually start around $4500 depending on credit and income).

 

[FeuerFrei]

https://www.penfed.org/credit-cards/promise-visa-card/

You're welcome.

Viper GTS

Reading the agreement:

(C) BALANCE TRANSFERS. Balance transfers are treated as cash advances. There is no grace period for payments on balance transfers. If you transfer a balance from another financial institution to us, you will immediately incur finance charges at the regular or promotional APR available at the time of the balance transfer and on purchases at the purchase APR. For instance if you transfer $1,000 at a promotional rate of 0% APR and then make a purchase of $200, you will immediately accrue finance charges at the purchase rate, forgoing the grace period. To avoid finance charges on new purchases after you transfer a balance, you must pay all balances on your account including any balances that you transfer in full by the due date.

Not sure I understand bolded text. Sounds like any purchases made after transferring a balance wipe out introductory APRs. So your entire balance, not just new purchases, is subject to normal APR. OR is it just the new purchases that accrue the purchase APR, not the transfer balance. That would mean different portions of your total balance would be charged at different rates. That right?

HOpe I'm making sense here. I know you guys don't work for PenFed. They need to clarify this bit.
Anyway, very interesting offer there. Thanks.

 

[Beer4Me]

Reading the agreement:
Not sure I understand bolded text. Sounds like any purchases made after transferring a balance wipe out introductory APRs. So your entire balance, not just new purchases, is subject to normal APR. OR is it just the new purchases that accrue the purchase APR, not the transfer balance. That would mean different portions of your total balance would be charged at different rates. That right?

HOpe I'm making sense here. I know you guys don't work for PenFed. They need to clarify this bit.
Anyway, very interesting offer there. Thanks.

To me, this paragraph reads such that if you transfer a balance from another CC under a promo offer, you are obligated to completely pay off the balance xfer PRIOR to using the card for regular purchases. If you do use the card while carrying a balance xfer, you forfeit the promo APR for that xfer, and the entire balance is treated with standard purchase APR. If this is the case, that's really really sh*tty. Discover and Chase don't do that with their balance xfers.

 

[manly]

To me, this paragraph reads such that if you transfer a balance from another CC under a promo offer, you are obligated to completely pay off the balance xfer PRIOR to using the card for regular purchases. If you do use the card while carrying a balance xfer, you forfeit the promo APR for that xfer, and the entire balance is treated with standard purchase APR. If this is the case, that's really really sh*tty. Discover and Chase don't do that with their balance xfers.

That's not what it's saying. If you transfer a balance in, then purchases do not get a customary grace period before interest accrues (usually about 20 days I believe).

Worse yet, if you make a payment, it will be allocated towards the 5% APR portion of the balance instead of the higher cost non-promo portion of the balance.

In short, as with pretty much all CCs, if you're getting some promotional rate for a balance transfer, don't ever use the card.

 

[AznAnarchy99]

16% is about right. I don't even bother knowing mine anymore unless I have a promotional 0%. I think my lowest is my Costco one which Amex originally gave me 10%.

 

[deadlyapp]

Reading the agreement:
Not sure I understand bolded text. Sounds like any purchases made after transferring a balance wipe out introductory APRs. So your entire balance, not just new purchases, is subject to normal APR. OR is it just the new purchases that accrue the purchase APR, not the transfer balance. That would mean different portions of your total balance would be charged at different rates. That right?

HOpe I'm making sense here. I know you guys don't work for PenFed. They need to clarify this bit.
Anyway, very interesting offer there. Thanks.

I think someone else already said it, but basically what they're saying is you get the promotional transfer rate, or the promotional purchase rate, not both. This is fairly common in my experience - it just means that if you make a purchase (outside your balance transfer) it is affected by the full APR of the card, not the promotional rate of the card. In addition, any payments you make will usually be applied first to the highest APR portion of your balance (after paying any interest) therefore the principal on the 0% balance transfer may reduce very little and you'd have to make it up later.

Short answer: if you open a card for a balance transfer reason, do not use it for any purchases!

 

[FeuerFrei]

That's not what it's saying. If you transfer a balance in, then purchases do not get a customary grace period before interest accrues (usually about 20 days I believe).

Worse yet, if you make a payment, it will be allocated towards the 5% APR portion of the balance instead of the higher cost non-promo portion of the balance.

In short, as with pretty much all CCs, if you're getting some promotional rate for a balance transfer, don't ever use the card.

^^ This is the way I'm currently reading/interpreting it.
No purchases will be paid off until your transferred balance gets paid off. So purchases percolate at 13% APR (or whatever) until you get that transfer balance paid off. This is why they TANTALIZE you to purchase $1500 in the first 90 days, by offering a $100 statement credit. So, silly me - if I tried that, would have $1500 accruing ~13% interest for many months, untouched until I paid the ~$7k I transferred.

 

[Beer4Me]

That's not what it's saying. If you transfer a balance in, then purchases do not get a customary grace period before interest accrues (usually about 20 days I believe).

Worse yet, if you make a payment, it will be allocated towards the 5% APR portion of the balance instead of the higher cost non-promo portion of the balance.

In short, as with pretty much all CCs, if you're getting some promotional rate for a balance transfer, don't ever use the card.

Ok, this makes more sense. Yea, this guy ^^^ gets it.

 

[Svnla]

It is a loaded question because the answer depends greatly on the credit card company, the borrower credit score/worthiness, and whether he/she is having an APR special with the credit card company.

Let see, these are rates (for the general public) from the largest credit card companies.

Citibank, from 13.99% and up.

Chase, from 15.24% and up.

BoA, from 12.99% and up.

AE, from 13% and up.

I use cash back credit cards for almost all of my daily spending, pay the balances in full before the due dates, get cold cash back in my pocket, rinse, repeat = happy panda. Never paid a penny for any credit card companies.

 

[BurnItDwn]

Why are credit cards always such shitty rates?

my mortgage is 3.15%, bought a cheap used car for the woman and only put 50% down, got like 3.9% rate loan from a regular bank. I'm sure my credit is good, but it's likely not perfect either.

I'm willing to pay 1-2% "extra" for the convenience of easy to access and secure money .... but banks charging more than like 8% are insane ....

 

[AznAnarchy99]

Why are credit cards always such shitty rates?

my mortgage is 3.15%, bought a cheap used car for the woman and only put 50% down, got like 3.9% rate loan from a regular bank. I'm sure my credit is good, but it's likely not perfect either.

I'm willing to pay 1-2% "extra" for the convenience of easy to access and secure money .... but banks charging more than like 8% are insane ....

Don't carry a balance. Interest and interchange fees are how the banks make money.

 

[BurnItDwn]

Don't carry a balance. Interest and interchange fees are how the banks make money.

Aye, I don't carry a balance, and haven't in a number of years ... just annoying if I don't pay attention to it and wind up paying later than the grace period by mistake ....

 

[Svnla]

Why are credit cards always such shitty rates?

my mortgage is 3.15%, bought a cheap used car for the woman and only put 50% down, got like 3.9% rate loan from a regular bank. I'm sure my credit is good, but it's likely not perfect either.

I'm willing to pay 1-2% "extra" for the convenience of easy to access and secure money .... but banks charging more than like 8% are insane ....

Why? Risk and Collateral.

When you do not pay your mortgage or pay your car loan, the bank can get you house/car and sell it to make some money.

When you do not pay your credit card debt, the bank is screwed, it can not take anything from you to sell and make money. Of course, your credit score would be in the shitter but what do you care if you do not have anything to lose.

You think CC rates are bad? Try to borrow from buy here pay here places or Rent A Center/Sub prime rental places/pawn shops. Just ask Highland and he will tell you.

 

[highland145]

Why? Risk and Collateral.

When you do not pay your mortgage or pay your car loan, the bank can get you house/car and sell it to make some money.

When you do not pay your credit card debt, the bank is screwed, it can not take anything from you to sell and make money. Of course, your credit score would be in the shitter but what do you care if you do not have anything to lose.

You think CC rates are bad? Try to borrow from buy here pay here places or Rent A Center/Sub prime rental places/pawn shops. Just ask Highland and he will tell you.

I heard my name. Someone in need?

And the bolded for me.

I'm ~35%. The title pawns are 200% and up. The payday advance guys are 390%. The pawn shops are 300% on $50 to 65% on $15K. All nice and regulated by the state.

 

[BurnItDwn]

Why? Risk and Collateral.

When you do not pay your mortgage or pay your car loan, the bank can get you house/car and sell it to make some money.

When you do not pay your credit card debt, the bank is screwed, it can not take anything from you to sell and make money. Of course, your credit score would be in the shitter but what do you care if you do not have anything to lose.

You think CC rates are bad? Try to borrow from buy here pay here places or Rent A Center/Sub prime rental places/pawn shops. Just ask Highland and he will tell you.

I understand they are unsecured, but, if somebody has a credit score over 800, and they have a mortage and are up to date on it .... I'd expect the rates on revolving debt to be higher, but not astronomically higher ... I mean, most people with good credit records for years and years and years would not throw away their credit rating...