Lower APR

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
8 posts
Twigs199
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Lower APR

Postby Twigs199 » Fri Jan 31, 2014 4:32 pm

Hey guys, first post! I was wondering about APR and how creditors find out witch tier you fall under. I have a US Bank card that I have had for 5 years and really never use it (400 CL) but my APR is at 11.99%. However my Discover is at 18.99% and my new Citi card is at 20.99%. Is it based off relationship with the creditor? I know it sais based on credit worthiness but with my cards they have such a broad range of APR. The higher APR cards do they eventually go down over time or do you have to request it? I had a capital one a year in a half ago and called because it was one of my stepping stone cards. It had a $35 annual fee and did not do much as a card except repair my credit. Once I started getting better offers to better cards I called them up and asked if they could up me to a better card and the phone rep acted like "it is what it is", I got the impression they didn't really need my business so I kicked it. But I guess what i'm asking is do I have to call to ask about a lower APR or will it eventually go down a tier on its own? And if I did called for an APR change would that be a hit on the score?

Thanks!


daniel2304
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Postby daniel2304 » Fri Jan 31, 2014 7:46 pm

Just drop the card with annual fee and no rewards. It's not worth it. You can try to negotiate your rate but I suggest you know where you're standing first
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

Twigs199
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Postby Twigs199 » Fri Jan 31, 2014 10:41 pm

Yea, I did drop it. What I'm wondering tho is how they figure APR. My APR is all over the place. My usage is pretty consistent, I figured my APR would be as well. Dose the time frame and relationship you have with the creditor effect your APR? And dose it go down overtime or do you have to apply for lower APR?

Thanks!!

Twigs199
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Postby Twigs199 » Fri Jan 31, 2014 10:47 pm

Yea I dropped that card about a year ago. What my main question is how they figure out your APR? My spending habits are pretty consistent however my APR is all over the place, from 11.99% to 20.99%. Shouldn't my APR be consistent as well?

Thanks a bunch!!

daniel2304
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Postby daniel2304 » Sat Feb 01, 2014 2:20 pm

APR is determined by lenders though. It's like that when you sign up for a game, you have to follow their own rules. I can see why each lender determine your APR differently than the other based on that theory.
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

takeshi
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Postby takeshi » Sat Feb 01, 2014 11:31 pm

Twigs199 wrote:Is it based off relationship with the creditor?

In part.

Twigs199 wrote:I know it sais based on credit worthiness but with my cards they have such a broad range of APR.

That's because their criteria vary. They decide their own tiers. Plus, your credit varies. When you apply there's no guarantee that your credit was identical throughout all your prior applications.

Keep an eye on your utilization. With high utilization I got stuck in the highest APR brackets and received low limits. Dropped my utilization about 5 months later with no other changes and got the lowest brackets and much higher limits.

Twigs199 wrote:The higher APR cards do they eventually go down over time or do you have to request it?

Depends on the creditor and the product. Some do, some don't. Never hurst to ask but, for example, USAA turns me down every time. Few months ago they dropped all my cards by 1% each.

Twigs199 wrote:And if I did called for an APR change would that be a hit on the score?

Depends on whether or not the specific creditor requires an HP for the APR reduction request.

JoDa
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Postby JoDa » Sun Feb 23, 2014 6:17 pm

Lenders just vary wildly, period. I have excellent credit, and the rate on my Target Visa is astronomical, but it's the lowest they offer. NBD, if I need to charge something I can't pay off before interest accrues, I just use another card with a lower interest rate. Truth be told, I keep that card only to get 5% off and free shipping from Target, and only use it for those things. The rate on my CSP is slightly higher than on my UMP, but both are the lowest for the product (that's even the same bank). It is what it is, it seems, so long as you get the best rate possible from the issuer.
CSP $19K
BOA $4K
UMP $11.5K
Target Visa $1.5K

rockyrock
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Postby rockyrock » Mon Feb 24, 2014 8:37 am

My rates are all over the place as well. Reward cards always are going to come in at a higher and it is very rare to get them to drop below the advertised rate for a card.

If you are applying for a second card with the same lender your spending pattern may come into play but if it is a first card they will not have that data so overall I think it is a smaller determining factor.

All that is just educated speculation based off my experiences and research. The only one that can truly tell you how it is determined is the individual lenders. They each use their own model to determine how much they will extend you and how much it will cost you. Don't expect them to tell you though...
American Express (2005): Premier Rewards Gold & Blue Cash Preferred
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC



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