Never had a credit card and trying to build credit. Keep getting preapproved credit cards with 19% or 23% APR. Have no idea what I'm looking for, so I ultimately shuck the card into the trash.
2007-04-05 05:11:20 · 9 answers · asked by lady_mask81 1 in Business & Finance ➔ Credit
First, to answer your question, lower annual percentage rate is always better than higher annual percentage rate without question. But the real answer doesnt really stop there.
If you dont have credit at all, then you need a credit card of some sort. It has a tremendous impact on your credit score believe it or not. Please understand it can have an impact both good and bad. Meaning if you get a card pay it good and keep it to 50% of the high credit limit it will help your credit score tremendously. However, on the other hand if you dont pay for the card on time, or you maximize the card to its credit limit it will hurt you even though you pay it on time. Sounds like you cant win but you can. If you have no credit, or little credit I would get the card, pay for something inexpensive and pay it when it is due. I would not use that card for at least 90 days, and do it again. This will keep the card active, and your credit will be raised. As crazy as that sounds its a fact. The reason I know that is because I had a case where a client had no credit, got a card, didnt even use it and it raised his credit score over 600, just makes no sense does it? If you have plenty of credit, and your credit score is high, just keep on chucking the cards, you dont need them. If you are prone to buy buy buy, then keep chucking them.
I hope this answers your question completely.
2007-04-09 05:08:53 · answer #1 · answered by Richard 2 · 0⤊ 0⤋
Ideally you would want it to be under 12% but alot of people dont really care and go with the 19%. The higher the APR the more interest you pay to the Credit Card Company/Bank. The lower the APR the more money goes towards the principal/amount you owe. If you choose a lower APR you won't be giving most of your money to the bank when you make monthly payments.
2007-04-05 05:16:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you never had credit, I would keep one of those cards and use it to build your credit history. I know it has a high interest, but just pay the balance off each month so you do not have to pay that interest. In a year or so, you will get cards with lower rates on them.
2007-04-05 05:26:05 · answer #3 · answered by Anonymous · 0⤊ 1⤋
It is always better to pay as much as possible to the higher interest rate card. How does paying off CC#2 "take advantage of the 0% APR"? However, what happens at the end of the interest free period? Does any balance get charged interest retroactively? If yes, at what rate? If not, then you are OK. You should pay the minimum required to CC#2 and, as I said earlier, as much as possible to CC#1.
2016-05-17 22:57:27 · answer #4 · answered by ? 3 · 0⤊ 0⤋
which is better depends on what side of the transaction you are on. If you are the card company, higher is better. If you are the consumer, lower is better. Look at it this way, would you want someone to pay you 25% or 10%? What that means is for every dollar you borrow from them, you pay back $.25 or $.10 respectively on top of the original dollar.
2007-04-05 06:24:46 · answer #5 · answered by ricks 5 · 0⤊ 0⤋
a lower rate is better. if you do get a card only charge what you can pay off every month, otherwise you will be paying the credit card people money for them lending you the money owed on the card
2007-04-05 05:15:51 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Low. And APR's of 19 -23 percent are bad. Thats way high. Dont do it!
2007-04-05 05:14:32 · answer #7 · answered by ♥♫♥ Crystal ♥♫♥ 4 · 0⤊ 0⤋
GOod for you. Chuck 'em all.
Those rates are way too high. You should get one under 10%.
2007-04-05 05:14:00 · answer #8 · answered by MOM KNOWS EVERYTHING 7 · 0⤊ 0⤋
low 7.0 to 14.0
2007-04-05 05:13:33 · answer #9 · answered by shorty21 5 · 0⤊ 0⤋