How many years does it take to get a low APR?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
3 posts
JustinT
 
Posts: 2
Joined: Tue Dec 01, 2015 9:41 pm

How many years does it take to get a low APR?

Postby JustinT » Tue Dec 01, 2015 9:54 pm

I have two credit cards that are 10 years old. One has a 9.15 APR the other has 16.24. I hardly ever use them so I never paid attention to the APR's. Do banks automatically lower your APR as the account ages? For those of you that have an APR in the 3-6 range, did it take years to get that APR?

One other question, I recently signed up for a Discover card to take advantage of their rewards program. I was instantly accepted, but will this cause my interest rate to go up on my other cards? Would a new card lower my average age of cards thus making my score go down, and with it, make my APR rise on my other cards? This would be my first new card in over 9 years.


kdm31091
Centurion Member
Centurion Member
 
Posts: 1074
Joined: Sat Feb 21, 2015 3:35 pm
Location: Claymont, DE

Re: How many years does it take to get a low APR?

Postby kdm31091 » Wed Dec 02, 2015 11:20 am

JustinT wrote:I have two credit cards that are 10 years old. One has a 9.15 APR the other has 16.24. I hardly ever use them so I never paid attention to the APR's. Do banks automatically lower your APR as the account ages? For those of you that have an APR in the 3-6 range, did it take years to get that APR?

One other question, I recently signed up for a Discover card to take advantage of their rewards program. I was instantly accepted, but will this cause my interest rate to go up on my other cards? Would a new card lower my average age of cards thus making my score go down, and with it, make my APR rise on my other cards? This would be my first new card in over 9 years.


No, getting a card will not cause your other APRs to change/increase. The new card will lower your average age of accounts, but that has nothing to do with your APR being raised.

Banks rarely automatically decrease APRs. It does very occasionally happen, but typically you need to ask for it -- after all, they aren't likely to voluntarily reduce their potential profit. But since your accounts are old, it's very possible you can call and get a reduction (though the 9.15% one may be the floor for that card). Also, it does depend on the issuer. Some steadfastly refuse to lower APR, no matter how long you've been a customer. Chase will not lower APRs; US Bank and Capital One are chiefly temporary reductions only; Comenity doesn't really do it. American Express, Discover and Citi will often do it if your profile supports, as well Bank of America. So unless the card is from Chase, US Bank or Capital One, in which case I'd say you're wasting your time, I'd call and ask.

takeshi
Centurion Member
Centurion Member
 
Posts: 1741
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Re: How many years does it take to get a low APR?

Postby takeshi » Mon Dec 07, 2015 8:52 am

It is not simply a matter of time. Time by itself doesn't improve one's credit. It's your credit profile that determines the APR that you qualify for. However long it takes your credit to improve to qualify is how long it will take.

JustinT wrote:One other question, I recently signed up for a Discover card to take advantage of their rewards program. I was instantly accepted, but will this cause my interest rate to go up on my other cards?

No.

JustinT wrote:Would a new card lower my average age of cards thus making my score go down, and with it, make my APR rise on my other cards?

A new card will definitely lower your AAoA (think about how averages work) but it will not raise your APR. If the new account is seen as significantly risky behavior you could see adverse action such as an APR increase but you'd probably see other bigger problems as well if that was the case.

JustinT wrote:Do banks automatically lower your APR as the account ages?

Again, it's not simply a matter of account age. An account's age factors into AAoA and credit profile but it's the entire credit profile that matters. Banks are not all exactly the same. Some do automatic APR reductions. Some do not. Some reduce on request. Some do not.



Return to “Finance Charges & APR Compare”

Who is online

Users browsing this forum: No registered users and 3 guests