I have a $3,500 limit on my card on which I have used $3,380. I make monthly payments of $129. My APR is 32.24% and Periodic rate is $96.85. I have this card since October of 2006 and have been late paying it twice (one in Dec. and Jan)/. Is this APR fair or is there the possibility of lowering this by switching banks???
2007-07-18 03:55:18 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
Because you were late twice you got bumped up to the default rate. So NO your credit card rate is not reasonable.
There is a possibility of you getting a lower rate if you switch banks. However, that would be dependent on the rest of your credit history and if you could get approved. Generally if you are current for a period of time your current credit card may also lower your interest rate. So you need to make sure you get the payments in on time from now on. You should call them and see what they can do for you.
2007-07-18 04:03:23 · answer #1 · answered by OC1999 7 · 0⤊ 0⤋
Great Scott!!!!!!!! 32% is crazy..... You could take out a loan to pay that off, then take the card out of your wallet, get a large pair of scissors, and cut it into tiny pieces. But don't close the account, the pay off will look better on your credit report. Pay the loan of course, and if you want try to find a card with lower intrest, around 16% APR at the absolute most. I have a card that is 8.99% APR. If you can't find a credit card for less than 16% APR, its probably best that you dont get one.
2016-05-21 18:27:53 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Yes and no, to start off I don't think anyone should be have 30% APR, but here is the problem, you have almost maxed out your limit. The APR you get is based off a number of factors one of that being the amount of debt to limit ratio. You might have never of missed a payment but because you are so close to maxing out it makes the card companies nervous so they raise the rate. Best bet, try to find a card with a higher limit transfer it over, you might have to pay a fee, and then stop using it. You shouldn't ever go over about 35 to 40% debt to limit ratio.
2007-07-18 04:02:13 · answer #3 · answered by Jeff M 3 · 0⤊ 0⤋
Doubtful. Many credit cards now have a term called "Universal Default" which means if you are late on ANY of your bills listed on your credit report, they'll jack up your rate.
If you make $129 payments each month and you are paying $96.85 in interest, you're only paying $32 per month in principal. This means it's going to take you 100 months (eight years) to pay it off.
Credit cards are evil. If you paid $129 into a savings account instead of a credit card each month, it would only take you 26 months (two years and two months) to save the $3380, and then you could spend it on anything you wanted and have a ZERO interest rate.
I don't know where America decided that it's ok to borrow on everything. What happened to saving up for whatever it is that you want?
2007-07-18 04:00:33 · answer #4 · answered by Scotty Doesnt Know 7 · 1⤊ 0⤋
That sounds really high. But if you're late, they often raise your rate, and being late twice probably really messed it up.
You could check other banks. If you have the late payments from this one on your record, you might have a problem getting another card though. Watch out for the very low rates - they are usually introductory rates, and only last for a limited time - check what they go up to when the initial time is over.
2007-07-18 04:02:11 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
It sounds and looks high. I believe in my state the maximum rate you can be charged is 18%.
The thing you should be careful of (and I fear it is too late) is piling up debt. A credit card is one of the worst items to carry a balance on. (I always pay mine off each month - I use it more like a debit card.) You should cut back on your spending, pay off your card as quickly as possible (pay more than the minimum payment), and look into converting your credit card debt to another loan at a better rate (and do NOT build up your credit card debt again).
You might want to see if you can join a Credit Union. They usually will help you with your finances and are a better deal than banks (usually).
2007-07-18 04:18:37 · answer #6 · answered by Randy 3 · 0⤊ 0⤋
It sounds like you are at the default rate for being late recently, and because you were recently late, it's doubtful you'll get approved for another credit card, so you can't transfer the balance.
Pay on time until they re-set your interest rate. On a couple of my cards, having recently just read the terms and conditions, they do that after 6 months of on-time payments.
2007-07-18 05:16:41 · answer #7 · answered by cardinalboy97 3 · 0⤊ 0⤋
32.24% ?!?!
Holy chit!!!!!
I have 1 credit card and my interest rate is 5.9% but I have no outstanding balance on it and I've never been late paying on it.
2007-07-18 03:58:09 · answer #8 · answered by kja63 7 · 0⤊ 0⤋