Lower APR Question

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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Whatamuji
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Lower APR Question

Postby Whatamuji » Mon Jun 08, 2015 11:31 am

Hi guys/gals I was wondering if there is any "rule of thumb" concerning when a new person to credit can expect to receive card offers with lower ranges of APR. And also has anyone had any luck reducing the APR on their current cards?
Kohls: $300, Discover IT: $1.8k, Capital One Quicksilver: $2k, Amazon Store Card: $2.2k, BoA Cash Rewards: 1k, Chase Freedom: 3.2k, AMEX HHonors 3k


Vermonster
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Re: Lower APR Question

Postby Vermonster » Mon Jun 08, 2015 9:59 pm

Generally you see lower APRs with cards that offer no rewards. Also some companies are much harder to get APR reductions, like Chase.

So no real rule of thumb.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

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CarefulBuilder14
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Re: Lower APR Question

Postby CarefulBuilder14 » Mon Jun 08, 2015 11:11 pm

When I called Discover to poke around for some extra rewards ($10 for $200 spend), the CSR offered to lower my purchase APR, too. 18.99% to 17.24%.

Had I been carrying a balance, the old APR would have continued to apply to that balance. The card had been open for about a year.

I think that the APR offer was already in Discover's system, just waiting in case I called in. The extra $10 was not an "instantly available" offer.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
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Letting new accounts cool off since May
Really not sure what I'll add next or when

Whatamuji
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Re: Lower APR Question

Postby Whatamuji » Mon Jun 08, 2015 11:44 pm

Any experience with Capital One or BoA? I inquired in a chat with Capital One, one day and they said they didn't offer APR reductions.
Kohls: $300, Discover IT: $1.8k, Capital One Quicksilver: $2k, Amazon Store Card: $2.2k, BoA Cash Rewards: 1k, Chase Freedom: 3.2k, AMEX HHonors 3k

Nixon
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Re: Lower APR Question

Postby Nixon » Tue Jun 09, 2015 6:18 am

My "Ring" card is a flat 8% on any and all transactions. No rewards other than intro promo which gave 1% back on all BT.

You just reminded me I need to call Barclays about an APR reduction on my SM and Aviator.
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takeshi
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Re: Lower APR Question

Postby takeshi » Tue Jun 09, 2015 8:29 am

Whatamuji wrote:Hi guys/gals I was wondering if there is any "rule of thumb" concerning when a new person to credit can expect to receive card offers with lower ranges of APR. And also has anyone had any luck reducing the APR on their current cards?

Sure -- the better your credit the lower the APR for cards with ranges. APR's aren't just randomly handed out. They're based on whatever your credit qualifies for.

The thing is that different creditors and different products have different policies and criteria so you can't just assume that there's a universal rule for what APR you'll get with any creditor/product or that you can expect APR reductions in all cases.

Whatamuji wrote:And also has anyone had any luck reducing the APR on their current cards?

Yup. Not with Chase though. No experience with the creditors you asked about. AmEx, Discover and USAA will reduce if you qualify.

Whatamuji
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Re: Lower APR Question

Postby Whatamuji » Wed Jun 10, 2015 12:22 am

Chase keeps sending me stuff in the mail, trying to get me to sign up for Chase Freedom. Every offer they've sent I've declined. The APR on all of em was 22.99 percent. However I opened the invite they sent me today and the APR was a bit lower 18.99 percent. Maybe if they go lower I might consider getting the card :p
Kohls: $300, Discover IT: $1.8k, Capital One Quicksilver: $2k, Amazon Store Card: $2.2k, BoA Cash Rewards: 1k, Chase Freedom: 3.2k, AMEX HHonors 3k

Vermonster
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Re: Lower APR Question

Postby Vermonster » Wed Jun 10, 2015 11:42 am

Citi sent me Offers for simplicity at 22.99% for about 2 months. Then one day I got an offer for DC at 12.99%. It is definitely worth waiting, especially because the offers are usually good for about 2 months. You're bound to get other offers in that time, just hope one has a lower APR.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

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Vattené
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Re: Lower APR Question

Postby Vattené » Tue Jun 16, 2015 9:39 am

I can certainly understand being interested in a Freedom but in no hurry to get it and waiting for a better offer. A lower rate is always better, and you never know when you'll have to pay some interest. If you are carrying a balance with any frequency, however, you're much better off getting a card with no rewards and a low APR. As previously mentioned, anything with a rewards structure is going to have a higher APR to compensate, but if you are accustomed to paying interest there are no-rewards cards with the main selling point of having a low APR.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
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American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Kevin86475391
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Re: Lower APR Question

Postby Kevin86475391 » Sat Jun 27, 2015 12:30 am

Whatamuji wrote:Any experience with Capital One or BoA? I inquired in a chat with Capital One, one day and they said they didn't offer APR reductions.


Wow, that's just not true regarding Capital One - or at least it wasn't as recently as about 6-8months ago. I actually have a perfect record when it comes to asking my card companies to lower my APR. I've asked several times and never been told no by any of them.

Personally I have two rules when it comes to the cards I select: I only use reward cards and I only use cards without an annual fee. I also have a rule for myself: I never pay interest. In theory of course this means paying off all my cards in full every month, but in practice I admit to instead often paying all of them off except whichever one has a 0% introductory APR. To make that strategy work it means I have to sign up a new card about every 12-18 months (I don't sign up for 6 month offers). I generally keep the 0% balance fairly low anyway - I never let it creep over 28% utilization for that account and generally try to keep it below 15%) and always pay at least 4X or 5X the minimum every month. It's just nice to always have a 0% card in case of emergencies so that I wouldn't have to use too much savings or find myself in a cash flow problem.

Anyway, that means I'm not especially concerned about purchase APRs because I never pay them. However, I still like to get the best deal I can just in case something does happen in the future. So I've requested a lower APR and been approved for it multiple times with Discover, and Bank of America at least once with Capital One, and honestly I thought it least once with Chase, but it's possible I'm wrong about Chase.

My approach is pretty much the same. I call up whichever company has me on the highest APR and say "Hi, I was just going through all my statements - and I always pay my balance off in full each month anyway - but I noticed my APR with you guys is ___% which really surprised me because that's higher than on all my other cards. With ___ (2nd lowest APR card) my APR is only ___% and with ___ (lowest APR card) it's only ___%. I really love using my ___ (their) card and I'm not planning to start carrying a balance anyway, but I was wondering if you guys could offer me a slightly lower rate since you're my highest APR card?"

And like I said, so far I've had a 100% success rate. Granted I've only done it about 6 or 7 times total, but so far so good. And obviously I wouldn't try this with any one particular company more than once every year or two. I've also always called rather than doing it online, and yeah regarding Capital One I had no trouble at all. It was about 6-8 months ago though so maybe they've changed. I actually got rid of their card, which I'd had for several years, because it did have an annual fee, but in the past every single year when I called and asked them to waive it they did. When they wouldn't this most recent year I cancelled it (and was refunded the fee). So, perhaps that coincides with a stricter (crappier) policy change that also did away with APR reductions.



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