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This is what I've done in the past, but I'm not trying to open new accounts right now. Even if I do, they give me a credit limit of like $1500, when they used to give $15,000. $1500 isn't worth it for me to open another account.
I'm basically wondering if I can get one card down to around 6%. This older lady I know has a Target card that was used to purchase repairs on her vehicle. She consistently paid the bill late - she was paying by check when the statement would come in the mail and somehow she was always one month behind. When she called Target, they put her on a 4 year payment plan and lowered her rate from like 20% to 6.5%. So that got me to thinking it is possible?
Her example really isn't valid. She was on a structured repayment plan that she was probably only eligible for due to her prior delinquency. By the time you figure in the late fees she was probably charged before they put her on the payment plan plus accrued interest her effective interest rate probably didn't change much.
Im really surprised some people have rates lower than 7%. That is lower than a lot of personal loans. I have no clue what mine is, I should probably check. Either way I paid $0 in interest last year. That I do know.
So it seems that people with good credit history hover around the 10-12% mark. Interesting. I suppose it would make sense that credit cards and personal unsecured loans for people with good history are the same - since both of these are sort of the same. I guess I was thinking that after a lot of years of on time payments that credit cards would lower your rates, they can just jack them up to 29.99% as soon as you miss one payment anyways. It seems to me that people who are financially literate, don't keep balances on CC anyway (unless it is a 0% rate). Wouldn't it make sense for CC companies to offer these people say 5% to entice them to use the CC rather than a home equity loan or something? Or is the risk just too great?
So it seems that people with good credit history hover around the 10-12% mark. Interesting. I suppose it would make sense that credit cards and personal unsecured loans for people with good history are the same - since both of these are sort of the same. I guess I was thinking that after a lot of years of on time payments that credit cards would lower your rates, they can just jack them up to 29.99% as soon as you miss one payment anyways. It seems to me that people who are financially literate, don't keep balances on CC anyway (unless it is a 0% rate). Wouldn't it make sense for CC companies to offer these people say 5% to entice them to use the CC rather than a home equity loan or something? Or is the risk just too great?
Also, note that CCs that give rewards are usually high interest ones. They are betting that you would fail at some point. My 12% AMEX is a mile reward card whereas the 6.24% has no reward and is my emergency card.
The only credit card I have that I actually use is Care Credit, by GE Capital. It's for big veterinary bills. Zero interest, as long as you pay it off within 6 months (after that I think it goes up to stratospheric levels, but I've always paid it off). It's much better that tapping my emergency fund.
The only credit card I have that I actually use is Care Credit, by GE Capital. It's for big veterinary bills. Zero interest, as long as you pay it off within 6 months (after that I think it goes up to stratospheric levels, but I've always paid it off). It's much better that tapping my emergency fund.
That's very common with store credit cards like Lowes/HD/Best Buy etc. 0% financing for X months, but then 25%+ if not paid by full. They'll charge you all the interest too, not just on the balance on the card at the end of the promotion. It's not a bad deal if you can stick to paying it off early, but it can bite you hard if you don't. They're betting you don't stick to the program.
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