Why does my Chase credit card have such a high APR?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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bisbicos
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Why does my Chase credit card have such a high APR?

Postby bisbicos » Tue Feb 28, 2012 2:03 am

I was just approved for a Chase Freedom MasterCard with a $2000 limit. However the interest rate is 22.99%. Anyone here have experience with Chase and having them lower APR's?

I will never carry a balance with such a high rate, also this is the highest interest rate by far I have on any credit card. Any idea why?
Credit Cards
American Express: Fidelity Rewards (2% cash back) 9.5k
Zync NPSL
Discover: Discover More (5% rotating categories) 12k
Mastercard: Chase Freedom (5% rotating categories) 4.6k
Visa: Citi Forward (5x pts on restaurants) 15.7k
Citi Dividend (5% rotating categories) 5.6
Capital One Journey (1.25% cash back) 1.25k
BofA AAA (5% on gas) 2.5k
PenFed Platinum Rewards (5% on gas 3% groceries) 7.5k

Future Cards
US Bank Cash +
Chase Ink


jeffysdad
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Postby jeffysdad » Tue Feb 28, 2012 8:48 am

It is probably mainly because the account is new, particularly true if you don't have a history with Chase. It should go down over time with a history of responsible use. I've found that my newly issued cards tend to come with a higher APR and lower credit limit at first.

For reference, the APRs on my Chase cards are 9.24%, Freedom; 13.24%, Amazon; 10.24%, Sapphire; and 15.24% for a newly issued Amtrak-branded card. I have a long history with Chase and considering that, I think my APRs are too high as well. I don't carry a balance so I don't worry about it, though.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

DavidNY
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Postby DavidNY » Tue Feb 28, 2012 7:11 pm

Very odd. My Chase Freedom card is 15.24%. What's the minimum payment amount, 2 or 5%?

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bisbicos
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Postby bisbicos » Tue Feb 28, 2012 9:32 pm

DavidNY wrote:Very odd. My Chase Freedom card is 15.24%. What's the minimum payment amount, 2 or 5%?


Chase obviously likes you more than me. I don't know where to find the min payment
Credit Cards
American Express: Fidelity Rewards (2% cash back) 9.5k
Zync NPSL
Discover: Discover More (5% rotating categories) 12k
Mastercard: Chase Freedom (5% rotating categories) 4.6k
Visa: Citi Forward (5x pts on restaurants) 15.7k
Citi Dividend (5% rotating categories) 5.6
Capital One Journey (1.25% cash back) 1.25k
BofA AAA (5% on gas) 2.5k
PenFed Platinum Rewards (5% on gas 3% groceries) 7.5k

Future Cards
US Bank Cash +
Chase Ink

DavidNY
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Postby DavidNY » Tue Feb 28, 2012 10:57 pm

Yes, after getting a great rate promo, Chase "liked" me enough to increase my minimum payment from 2% to 5% forcing an early pay off. They did this to lots of people, some of whom couldn't afford the jump. Chase to Increase Minimum Payment On Credit Card Balances

They don't give a flip about you unless you have >$100k with them, and they are very clear on that point. JPMorgan Clients With Under $100K Unprofitable - Bloomberg

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bisbicos
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Postby bisbicos » Wed Feb 29, 2012 12:07 am

That's interesting. However due to my extremely high Apr I will never carry a balance with chase
Credit Cards
American Express: Fidelity Rewards (2% cash back) 9.5k
Zync NPSL
Discover: Discover More (5% rotating categories) 12k
Mastercard: Chase Freedom (5% rotating categories) 4.6k
Visa: Citi Forward (5x pts on restaurants) 15.7k
Citi Dividend (5% rotating categories) 5.6
Capital One Journey (1.25% cash back) 1.25k
BofA AAA (5% on gas) 2.5k
PenFed Platinum Rewards (5% on gas 3% groceries) 7.5k

Future Cards
US Bank Cash +
Chase Ink

jeffysdad
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Location: Texas

Postby jeffysdad » Wed Feb 29, 2012 6:48 am

That Bloomberg story is very interesting. It's focused on deposit accounts mainly. I think it's funny that Chase, according to the presentation slides cited by the Bloomberg reporter, thinks branches are a cheap way to get "affluent" customers.

I don't know if I count as affluent, but I never go into a Chase branch since I can deposit checks at the ATM. My savings account is with an online bank with no branches that pays a far better rate than Chase offers. My investment accounts are at Fidelity, which offers a huge amount of account management capabilities online, charges lower fees than Chase and has branches, too, although I've never been in one.

Theoretically, I could put $100k into a Chase deposit account, but I can't imagine any reason in the world why I would want to. I'll just keep using their credit cards opportunistically to get the rewards, and the basic free checking account to facilitate transfers to my other accounts, which pay interest, Chase, btw.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

DavidNY
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Postby DavidNY » Wed Feb 29, 2012 9:41 am

jeffysdad wrote: I'll just keep using their credit cards opportunistically to get the rewards


Ditto. they have a pretty good rate if you look at rewards as "interest." I got about $25 in rewards from them this month. It would have taken a long time to get that as interest in one of their savings accounts.

Do you have any online savings recommendations?

jeffysdad
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Postby jeffysdad » Wed Feb 29, 2012 10:05 am

I'm currently using Discover after switching from ING Direct. ING's rate had been declining for a while and I wasn't too excited about the CapOne buyout. However, I've kept the account open and could switch back depending on how things go.

Discover's rate has dropped lately, too; yield is now 0.9%, if I remember correctly.

With my balance we're really talking about a difference of pennies per month, but it's the principle that matters to me. Even my apparently attractive cc borrowing rates with Chase (noted above) are more than 10 times what I can earn on my savings, which is completely ridiculous.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

Celestine
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Postby Celestine » Tue Mar 13, 2012 6:17 pm

bisbicos wrote:I was just approved for a Chase Freedom MasterCard with a $2000 limit. However the interest rate is 22.99%. Anyone here have experience with Chase and having them lower APR's?

I will never carry a balance with such a high rate, also this is the highest interest rate by far I have on any credit card. Any idea why?


Credit card APR, so as other mortgage/other loans' APR, are determined by the applicant's credit history and score.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln



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