Rate = 0 if balance = 0.
DO NOT spend money that you don't have!
DO NOT spend money that you don't have!
What's a Good Credit Card Rate?
- Thread starter john_pifer
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The prime rate has gone up a lot lately, perhaps 2 or 3 percent in the past 2 years. THIS is why your rate goes up. Almost all credit cards in the country are tied to the prime rate. The federal reserve sets the rate as I understand it, and the banks follow that rate.
My Amazon and Target card are like 27%, but I don't care. For me, I could care less what the rate is. I pay my credit cards off monthly so don't pay any interest or fees, and the higher rate credit cards come with higher benefits. I get 5% back at Amazon, on gas, on groceries, etc. I actually pay 7% less for fuel than the guy across the pump due to credit card rewards and Shell 5 cents off per gallon. If you are good with your money and play it right, you can get back THOUSANDS of dollars per year, in free money, just by using the correct credit card with the correct merchant.
My Amazon and Target card are like 27%, but I don't care. For me, I could care less what the rate is. I pay my credit cards off monthly so don't pay any interest or fees, and the higher rate credit cards come with higher benefits. I get 5% back at Amazon, on gas, on groceries, etc. I actually pay 7% less for fuel than the guy across the pump due to credit card rewards and Shell 5 cents off per gallon. If you are good with your money and play it right, you can get back THOUSANDS of dollars per year, in free money, just by using the correct credit card with the correct merchant.
Originally Posted By: john_pifer
What am I not understanding? In the article, this card is described as having a 9.75% ongoing rate, as opposed to others mentioned in the article, which are described as having a variable rate.
The prime rate was something like 15 or 20 percent in the 1980's. So your best credit card was 17 to 23 percent, for the best credit card in the country. When the prime rate goes up, your interest rate on your credit cards goes up.
You could have a fixed rate mortgage, where your rates stay the same. But fixed rate credit cards are a rare thing, if they even exist.
What am I not understanding? In the article, this card is described as having a 9.75% ongoing rate, as opposed to others mentioned in the article, which are described as having a variable rate.
The prime rate was something like 15 or 20 percent in the 1980's. So your best credit card was 17 to 23 percent, for the best credit card in the country. When the prime rate goes up, your interest rate on your credit cards goes up.
You could have a fixed rate mortgage, where your rates stay the same. But fixed rate credit cards are a rare thing, if they even exist.
Originally Posted By: john_pifer
I have been paying it off in full, every month. It just irritated me to see that the rate, in case something happened and I had to carry a balance, would be so high.
A quick search revealed a US News & World Report article that listed Simmons Bank as having a card that has an ongoing rate of 9.75%.
My card has a feature when you can set it so that it gets paid off automatically in full every month. That way you never miss a payment although I think if you pay on time all the time, they'll waive a late charge/interest if you're late once per year.
I have been paying it off in full, every month. It just irritated me to see that the rate, in case something happened and I had to carry a balance, would be so high.
A quick search revealed a US News & World Report article that listed Simmons Bank as having a card that has an ongoing rate of 9.75%.
My card has a feature when you can set it so that it gets paid off automatically in full every month. That way you never miss a payment although I think if you pay on time all the time, they'll waive a late charge/interest if you're late once per year.
retire it in for a card that provides cashback rewards or travel rewards and dont carry a balance.
Good no annual fee ones..
amex blue cash 3% on groceries 2% gas 1% everything else
chase freedom 5% rotating categories 1% everything else
chase freedom unlimited 1.5% on everything.
plenty of other good ones out there.. and some with fees that are worth it.
for example my amex blue preferred with 6% cashback at grocery stores nets me 360-75= $285/yr
Almost all have signup bonus as well.
Good no annual fee ones..
amex blue cash 3% on groceries 2% gas 1% everything else
chase freedom 5% rotating categories 1% everything else
chase freedom unlimited 1.5% on everything.
plenty of other good ones out there.. and some with fees that are worth it.
for example my amex blue preferred with 6% cashback at grocery stores nets me 360-75= $285/yr
Almost all have signup bonus as well.
Originally Posted By: john_pifer
Just noticed that my credit card rate is 16.49%. I don't believe it started out that high, years ago, when I first got this card. There's no reason for them to have gone up - I've never been late on a payment, and I usually pay it off every month, but I'd still like it to be lower, just in case.
I noticed it when they recently changed the app and added a feature that lets you easily see the purchase APR.
I've never been late on anything, and, last time I checked my score, over 2 years ago, when I got my WRX, I was 800+.
So, what's a good rate? Shouldn't my company lower it if I call and demand it? I would think it should be well under 10%.
To answer your questions - yes you can call and ask for a lower rate, and should. If they won't budge, might I suggest a credit union card? They are usually a lot lower interest. Unless some frills with your current card are important, there is really no reason to stay with them.
Just noticed that my credit card rate is 16.49%. I don't believe it started out that high, years ago, when I first got this card. There's no reason for them to have gone up - I've never been late on a payment, and I usually pay it off every month, but I'd still like it to be lower, just in case.
I noticed it when they recently changed the app and added a feature that lets you easily see the purchase APR.
I've never been late on anything, and, last time I checked my score, over 2 years ago, when I got my WRX, I was 800+.
So, what's a good rate? Shouldn't my company lower it if I call and demand it? I would think it should be well under 10%.
To answer your questions - yes you can call and ask for a lower rate, and should. If they won't budge, might I suggest a credit union card? They are usually a lot lower interest. Unless some frills with your current card are important, there is really no reason to stay with them.
Originally Posted By: gathermewool
For most other purchases, I use my Blue Cash Rewards Amex. Altogether, the CC companies pay me hundreds per year to use...
After my American Express experience I can't recommend them. Thread coming soon with details.
For most other purchases, I use my Blue Cash Rewards Amex. Altogether, the CC companies pay me hundreds per year to use...
After my American Express experience I can't recommend them. Thread coming soon with details.
I have a B of A card @ 7.9% for 15 years now. I did swap cards early on to get lowest rate. To keep your rate down Keep a good score by never being late on any payment. Then Use the card a LOT which is made easier if it has a cashback program. I pay my balance every month so I don't pay interest. And get 1% back on every purchase to boot.
They make their money not on MY interest but on the ~2% the vendor pays to accept the card.
They make their money not on MY interest but on the ~2% the vendor pays to accept the card.
I use the GM credit card pay it off every month never a balance. I like it because I every 3 years I lease a vehicle under my business for my wife and I get $1500 off the negotiated price plus they always double it .Got a 2018 traverse 2LT with leather for zero out of my pocket for $325 a month.
Originally Posted By: Imp4
Rate = 0 if balance = 0.
DO NOT spend money that you don't have!
Exactly!
The best rate is one that doesn't exist. The debit card will do everything the credit card can except rent cars at some rental agencies.
That being said i have one CC that i only use for travel a couple times a year and i pay it off the day i return making the rate irrelevant.
I use cash mostly as studies have shown you spend 18-20% less using cash over a debit/credit card.
Rate = 0 if balance = 0.
DO NOT spend money that you don't have!
Exactly!
The best rate is one that doesn't exist. The debit card will do everything the credit card can except rent cars at some rental agencies.
That being said i have one CC that i only use for travel a couple times a year and i pay it off the day i return making the rate irrelevant.
I use cash mostly as studies have shown you spend 18-20% less using cash over a debit/credit card.
I got the Bank America cash back card the red one. I am usually within 100.00 as I pay on it ongoing through the month.
gathermewool
Site Donor 2023
Originally Posted By: JLTD
Originally Posted By: gathermewool
For most other purchases, I use my Blue Cash Rewards Amex. Altogether, the CC companies pay me hundreds per year to use...
After my American Express experience I can't recommend them. Thread coming soon with details.
I look forward to hearing about it.
Besides my Chase Amazon VISA card, my Amex has been the only care I haven’t ever had a problem with. I’ve had maybe 10 -15 cards over the years, depending on who offered what benefits.
I often apply for a card if there are benefits on a large purchase. When I purchased our Samsung 7000 series tv 5 years ago, I applied for a Military Star card. When I purchased a new washer and Dryer, I applied for a Sears card. Etc. doesn’t seem like much of a benefit, but if a place has the lowest price AND I can get an additional 5% off, alright! That was $100 off of my tax-free TV, for instance!
Originally Posted By: gathermewool
For most other purchases, I use my Blue Cash Rewards Amex. Altogether, the CC companies pay me hundreds per year to use...
After my American Express experience I can't recommend them. Thread coming soon with details.
I look forward to hearing about it.
Besides my Chase Amazon VISA card, my Amex has been the only care I haven’t ever had a problem with. I’ve had maybe 10 -15 cards over the years, depending on who offered what benefits.
I often apply for a card if there are benefits on a large purchase. When I purchased our Samsung 7000 series tv 5 years ago, I applied for a Military Star card. When I purchased a new washer and Dryer, I applied for a Sears card. Etc. doesn’t seem like much of a benefit, but if a place has the lowest price AND I can get an additional 5% off, alright! That was $100 off of my tax-free TV, for instance!
gathermewool
Site Donor 2023
Originally Posted By: gathermewool
Originally Posted By: JLTD
Originally Posted By: gathermewool
For most other purchases, I use my Blue Cash Rewards Amex. Altogether, the CC companies pay me hundreds per year to use...
After my American Express experience I can't recommend them. Thread coming soon with details.
I look forward to hearing about it.
Besides my Chase Amazon VISA card, my Amex has been the only care I haven’t ever had a problem with. I’ve had maybe 10 -15 cards over the years, depending on who offered what benefits.
I often apply for a card if there are benefits on a large purchase. When I purchased our Samsung 7000 series tv 5 years ago, I applied for a Military Star card. When I purchased a new washer and Dryer, I applied for a Sears card. Etc. doesn’t seem like much of a benefit, but if a place has the lowest price AND I can get an additional 5% off, alright! That was $100 off of my tax-free TV, for instance!
//
I must say again: only pay off your statement balance. If you pay off your entire balance each month, you’re a sucker. I’d rather the CC company give ME another interest-free month to pay off NEXT month’s bill.
Originally Posted By: JLTD
Originally Posted By: gathermewool
For most other purchases, I use my Blue Cash Rewards Amex. Altogether, the CC companies pay me hundreds per year to use...
After my American Express experience I can't recommend them. Thread coming soon with details.
I look forward to hearing about it.
Besides my Chase Amazon VISA card, my Amex has been the only care I haven’t ever had a problem with. I’ve had maybe 10 -15 cards over the years, depending on who offered what benefits.
I often apply for a card if there are benefits on a large purchase. When I purchased our Samsung 7000 series tv 5 years ago, I applied for a Military Star card. When I purchased a new washer and Dryer, I applied for a Sears card. Etc. doesn’t seem like much of a benefit, but if a place has the lowest price AND I can get an additional 5% off, alright! That was $100 off of my tax-free TV, for instance!
//
I must say again: only pay off your statement balance. If you pay off your entire balance each month, you’re a sucker. I’d rather the CC company give ME another interest-free month to pay off NEXT month’s bill.
I use my costco anywhere visa card for the points, I never carry a balance, i pay everything i can with it. I get a good bit back each year.
Last edited:
JHZR2
Staff member
Originally Posted By: madRiver
High rate cards are tied up with great benefits. If you pay it off who cares.
We have the amazon card and get 3% kick on amazon purchases (150 orders per year + prime), 2% on gas, restaurant and drugstores. 1% everything else. Lucky because our home heating fuel is incorrectly setup as gas to them.
+1. I think one of my cards is 23%. But it gives great perks. I don't keep a balance so I don't care.
I believe often the rate is fixed and not tied to a person's credit score. The limit and approval is tied to score and income.
High rate cards are tied up with great benefits. If you pay it off who cares.
We have the amazon card and get 3% kick on amazon purchases (150 orders per year + prime), 2% on gas, restaurant and drugstores. 1% everything else. Lucky because our home heating fuel is incorrectly setup as gas to them.
+1. I think one of my cards is 23%. But it gives great perks. I don't keep a balance so I don't care.
I believe often the rate is fixed and not tied to a person's credit score. The limit and approval is tied to score and income.
Originally Posted By: gathermewool
Originally Posted By: JLTD
Originally Posted By: gathermewool
For most other purchases, I use my Blue Cash Rewards Amex. Altogether, the CC companies pay me hundreds per year to use...
After my American Express experience I can't recommend them. Thread coming soon with details.
I look forward to hearing about it.
Here you go, sir.
Originally Posted By: JLTD
Originally Posted By: gathermewool
For most other purchases, I use my Blue Cash Rewards Amex. Altogether, the CC companies pay me hundreds per year to use...
After my American Express experience I can't recommend them. Thread coming soon with details.
I look forward to hearing about it.
Here you go, sir.
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