Brad Bishop wrote:I think that the argument is simple:
If 20.99% is too high for you then just cancel the card.
If it's not too high, based on your circumstances, then keep the card.
Me? I'd cancel it. I'm not paying over 10.99APR for a credit card.
Fastphilly wrote:That's the sticky point. It's nearly impossible to find a credit card paying out 2% or more in rewards with a sub 10.99APR. My Credit Union card I earn 1 point for every dollar spent towards rewards (airfare, hotel or merchandise from their rewards website) with a fixed 9.9% APR but now I'm looking for a better rewards program since I'm in aggressive payoff mode on that CU card and I prefer cash back so I'll have to deal with it. There is no way on God's green Earth I'm leaving a revolving balance on a card that high. Reminds me of the old Providian days with that kind of APR LOL!!!
CarefulBuilder14 wrote:No one who could avoid it would pay even a moderately high APR. So if someone is going to pay them interest, anyway, why not charge a very high APR?
Rewards should really just be an afterthought for people who PIF - or at least don't pay interest.
If I was paying 9.9% interest on $10k, I would focus on doing a no-fee, 0% balance transfer before I thought about more cash back.
Your APR does sound high for someone with your long history, but your utilization is also quite high.
And it's pretty common for cards with great rewards to have bad APRs. I've averaged 4.5% cash back on my Sallie Mae (not counting the small signup bonus) but Barclaycard is still planning on having my 0% jump to 22.99% after the first year.
Fastphilly wrote:Thanks for the advice, my current balance is now $5,700 due to a large payment (tax return plus wages earned). I plan to have this card paid off by the end of May. The reason I don't take the 0% intro offer on transfers to my new Citi card is the 3% fee on balance transfers. After doing the math I'd pay more on the transfer fee $170 than paying interest on the 9.9% CU card. I've figured paying it down $1,800 per month until May would be less money wasted than the transfer fee. It's not substantial but it is money saved. Besides transferring $5,700 to a card that has a $6,600 credit line would put my uti on the Citi card at over 80%. No thanks!
CarefulBuilder14 wrote:Citi would charge you a fee to do a BT, yes - but there are cards that don't charge that fee.
It sounds like you've got enough accounts to track for now, though, and will pay it off quickly, anyway.
Fastphilly wrote:I just find it hard to believe that a 10K balance on a credit card with a income of 85K per year warrants a borderline loan shark rate for my excellent credit history.