How much of an APR is too much? Vehicle loans not Credit Cards?

Answer 1

There is no easy way to figure this out....

If you have a good credit, it is possible to get loans at or even under the prime rate. Many times, manufacturer sponsored loans are offered at a rate slightly under the prime rate. You have to have an EXCELLENT credit to actually qualify for these.

If your credit is anything other than excellent, or maybe you don't have a bad credit, but you have insufficient credit, such as not enough credit history, first time buyer, etc, you may have to settle for prime + 4% or so.

If your credit is bad or awful, then you'd be lucky if you can even get one. I've seen one as high as 28%!!

(by the way, consumer loans are NOT *directly* tied to prime rate, but this is an easy comparison)
The only thing you can do is to shop around. Contrary to popular belief, a car dealer is not a bad place to rate shop. The incentive is on them to give you a loan to sell you the car. Sometimes, their wider net and extra push will more than supplement a small percentage they tack on to your rate.

Just shop around at bank or credit union first, and see what you can get. Then go from there.

Answer 2

As the competition between various credit card companies is increasing, they are adopting more attractive offers to acquire new customers. Though not new but 0% APR credit cards are also in the league of such offers. APR stands for Annual Percentage Rate - which in simple terms is the interest charge by companies on outstanding credit card balance. So a 0% APR means no interest is charged from the credit card holder.

0% APR credit cards come with many flavors:

0% APR for the life of credit card

0% APR for a limited period

0% APR offers for some services and a different APR rate for other services.

A credit card holder should face the fact that this kind of offer is only a marketing strategy and won't last for long. This is because that a credit card company is there to make money for their services and the APR is their leading money spinner. The 3 must ask questions listed below will surely help you get a perspective on your 0% APR credit card and make an informed decision.

1. How long will the 0% APR offer last?

If it is not for the entire life of credit card how long is the 0% APR offer going to last. Some credit card companies give this offer for 6 months, some 1 year and some for even more than that. If other things are the same the one with the longest 0% APR offer should interest you. read more from: http://www.credit-card-gallery.com/article/201,3_must_ask_questions_to_maximize_your_0_APR_credit_card_return

Answer 3

depends on what you can afford with good credit you should not be over 8% with bad credit you dont have a choice.