Is a APR of 19.8% good?

Question

I just got a credit card and on the paper i got in the mail it said that my APR is 19.8% but the thing i want to know is if that is good or bad???? can someone help me

Answer 1

It depends on what your credit score is. If you have a lower credit score (say, below 625) you will get a higher rate.
You can call the credit card company ans ask them to lower the rate. Many companies, surprisingly, will do so upon request.
Good luck-

Answer 2

only for the card issuer. The APR or 'annual percentage rate' is the rate charged on outstanding balances ... if you pay your card off every month during the 'grace period' then it doesnt matter ... but if you have a $100 balance on the card for a year ... it costs you $19.80 for that luxury ...

There are a number of card programs with rates as low as zero. Time to shop around.

Rates are determined by (i) cardholder credit scores and (ii) what the market will bear ... meaning, the highest rate that the customer will pay ... and the rate setting takes advantage of a lot of people who do not read their statements or even understand what an APR is.

So kudo's for actually reading the disclosure ... now do a little quick checking around on bank websites to find a better rate ... it should not be hard to find one.

Answer 3

I can't believe all these answers!!!

20% for someone starting out is FINE and NO it doesn't mean you pay $2 for charging a $10 item. It's 20% PER ANNUM you clowns, not per month.

What's more important is to look for add on fees or late penalties if you ever are late. If you use your 20% card for a few years and pay on time, you can do better as you establish yourself. If you run, tear it up, cancel everything or some of the other lame suggestions here, in 3 years you'll be right where you are now.

Using credit wisely is a sign of maturity and can enhance your life if you are careful. Use it without responsibility and you will learn very quickly that it's expensive to be broke and without credit.

Answer 4

19.8? A bit high. Although if you think about it there's not many credit cards out ther offering better these days. I wouldn't want an APR that high though. Look around for better. Also try not to use that one.

Answer 5

No way. Any credit card solicitations you get from the mail shred immediately. If you are looking for a credit card, apply at your local bank or credit union, they offer the best rates and if you are trying to rebuild your credit or establish it, the best route is a secured credit card. Which means that you put $500 in a savings account those funds are then placed on hold and the bank issues you a credit card.

Answer 6

Well, no, it's not great at all, but it's typical. Best advice: do not carry a balance on a credit card, especially not at that rate.

Only time it's useful is if you get something like a 0-5% rate on a transfer or something, so long as you're putting the money to more effective use.

Answer 7

Way bad. Find another credit card company. They're a dime a dozen. Read the small print. The cheaper interest is usually for a short amount of time. Pay attention and pay in cash. Best advice. Trust me.

Answer 8

that is very high. Don't cancel the card, and don't use it. It is better to have a credit card sitting with a 0 balance then no credit card at all. It helps your credit rating.
Chop the damned thing up and pretend like it is not there.

Answer 9

well, think about it this way, you make a $10 purchase you get a $2 charge if it's not paid at the end of the month, $100, you get a $20 charge, $1000, a $200 charge.

how about you stay away from cc's and stick to cash and debit, you can even get some of the same incentives and protection wiht a debit

Answer 10

Ye Gods.

Horrible. 19.8% is a ripoff. Pay in full each month so you don't have to pay interest, and look for a better rate from another card.