Will my 30% APR credit card ever return to its original APR?

Question

I missed a payment on a credit card with an introductory 0% APR. The APR rocketed to 30%. I finally paid off the balance and have no intention of using it with its current APR. When can I expect the APR to return to a more reasonable level? Will having a card with such a high APR negatively impact my credit rating? I know that it is better to hold on to the card rather than cancel it, but would this be an exception to this rule?

Answer 1

I would recommend carrying a balance on this card for a while and paying it off each month. Hopefully, the credit card company will lower your APR back to the original.

If all else fails, you can try to give them a call. Ask when you can expect your rate to go back down. Tell them you'd like your original rate-- and ask if they can lower it again. If not, mention you've received a better offer-- or that you'll be looking for another one. Even though you made a late payment, the credit card company still wants your business!

If that doesn't work, you might consider transferring to another 0% APR credit card. Here's a great list:

http://www.asapcreditcard.com/0-apr.html

Keep in mind, you probably won't get an APR as good as your original. Your credit score has surely dropped due to the late payment-- but getting a rate lower than 30% with a 0% intro would be nice! Over time, your credit score should return with timely payments and so will your APR.

GOOD LUCK!

Answer 2

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RE Will my 30% APR credit card ever return to its original APR?

I missed a payment on a credit card with an introductory 0% APR. The APR rocketed to 30%. I finally paid off the balance and have no intention of using it with its current APR. When can I expect the APR to return to a more reasonable level? Will having a card with such a high APR negatively impact my credit rating? I know that it is better to hold on to the card rather than cancel it, but would this be an exception to this rule?

Answer 3

It will *never* go back down to 0%, but it will probably go back to the non-teaser APR (usually around 18-20%) after paying it on-time for a few months. During this time, you'll be paying that 30%, though. My suggestion would be to gather what money you can and pay off the entire balance of the card. If that's impossible, then perhaps you could open up another 0% card and pay the minimum payments on time.

Emergencies (such as hospitalizations) do happen and bills aren't paid on time... sometimes if you call the credit card company and explain your situation, they will forgive a late payment, but this is VERY rare... usually, you will have been a long-time customer and had a history of paying on-time and often in-full.

Let this be an expensive lesson an next time try to pay at LEAST the minimum *one week early* through electronic bill-pay. Live within your means (but, again, emergencies happen) and see if you can manage to pay your card off in-full and on-time for new purchases.

When not paying a balance in-full, the sooner you pay, the better; because you end up lowering the "average daily balance" that the interest is calculated from.

Good luck with this and I'm sorry that you were hit with that delinquency APR. The price of that alone has made me want to pay on-time, even if it meant that I'd only have a few hundred dollars left in my savings account (emergency/"when car goes to hell" fund).

Answer 4

It won't ever return on it's own. The 0% was introductory so it would have at some point gone to some higher percentage anyway, (Not 30% but maybe 12% or something, depending on what your rate was going to be).

What you'll probably have to do is use the card but pay it off at the end of every month for a few months. If you pay it when the bill comes, you don't get any interest added on. After a few months of on time payments, call them and ask for a lower rate.

The chances of any credit card company lowering interest rates on their own is remote.

As far as canceling the card, a credit card with a zero balance is actually good for your score.

Answer 5

will probably have to apply for a new card - BUT
by missing that payment - you will get lousy rates

may have to use the card you have - just charge what can
be paid off in a month - and you should accrue no interest
if you are paid off - (AND you will get a better score)

I have had a card for over a year 19% APR - never paid a cent -
because it is paid off in full every month - and I have made
$250 in bonuses from the card - is that why my credit is 805?

Answer 6

Depending on the company, you could get them to lower the APR by asking and, if that doesn't work, threatening to cancel. It may take numerous calls, but eventually all my card companies lowered my APRs to 12% and under.
It may help to look up the retention department number for that company. Just go to one of the following web forums and do a search for retention, name of card company.

www.cardratings.com

www.creditboards.com

Good luck.

Answer 7

youve paid it off, but its still open? thats good for your credit, but I'd call them and tell them you have no intention of using it unless they lower the apr to a reasonable rate. If you only missed one payment then you can find other cards at good rates.

Answer 8

Keep it paid on time for a few months and then CALL the cc company. Tell them you intend to cancel the card unless they lower your interest rate. They will look at your record and most likely lower it. If they don't, then get rid of the card.

Answer 9

never go down

Answer 10

No they own your butt now