What is a good credit card rate?

[Questor]

I've only got one credit card, and have had it since 1988. If I held a balance on on, the interest rate would be 13%. What is a good rate?

I'm beginning to have some doubts about keeping this card, even though I seldom carry a balance on it. I got a letter saying that the interest rate will be a function of the federal prime rate, which means it has nowhere to go but up. I don't like this kind of a gesture, so I want to explore other options.

[Graybeard]

I think about the best for a long term rate these days is 7.99% but 9.99% long term rate is considered good. You can get "short term sucker them in rates" from zero to around 3% but they are good only on balance transfers usually and usually only for six months with a year absolute max.

The plan with those is to get you to bring in a large balance they know you won't pay off in that time frame then they almost always hit you with a much higher rate usually 14.99% to 24.99% and if you make one payment one day late they can go up even higher.

If you run up really large balances you can negoitate a rate as low as zero for a five year pay back period if you threaten to not pay the debt at all unless they cooperate. Most likely adversely affects your credit rating but can be done easily enough these days. There are even companies out there who specialize in getting the credit card companies to lower the total balance and drop rate to zero. I don't think you can talk them into that on your own tho. I think the balance has to be many thousands to do either of those last two.

[pastorp]

Questor,

My wife and I use a card that gives airmiles for every dollar spent. We put all our purchases on that card.

I don't know or really care what the interest rate is because we pay it in full each month. I just want the air miles on our favorite carrier. We do most of our travel almost free by using the miles to buy our ticket. I say almost free because they usually charge $5.00 or so per ticket tax.

So far this year we bought tickets for both of us to fly to the east cost and twice to anchorage. By paying the card in full we paid no interest.

Find a card that gives you something you want or need in return and pay in full every month. The card company makes money off the murchants not me by doing it this way.

Regards,

[teamnelson]

Questor,

If you've had it that long, call your bank and they should drop the rate for you for maintaining good credit. I've had one at USAA for a couple decades now, and they've dropped my rate to about 5% and the limit is more than I'd pay for a new truck. I would think given today's economic woes the banks would be rewarding folks who did not finance houses on speculation, or who are not defaulting on personal debt ... or needing a bailout.

S/F,
Chaps

[bubba]

I have found the best rate is 0.00 percent. I use a debit card and if I domt have the money, I dont buy it.  It seems to work better for me. 

[quickdtoo]

The cards I have are 9.9%, but I'm with Bubba in that I pay zero percent interest by paying off the balance of my credit cards every month, works best for me that way, paying interest just adds to the cost of anything I buy if I carry balances over.  If I need to buy a big item on credit, I use my bank line of credit which is 3.25%, used that for new windows recently.

Tim

[teamnelson]

We use the credit card for everything and pay it off each month just because its easier on the way we budget and track expenses, etc. That and the rewards. However as my wife pointed out, part of the new regime's brilliant plan is to do away with "grace periods" which means interest will begin accrual at time of transaction. All that really does is give the banks a way to try to make a little more interest, which I don't see working to help out folks who are not able to pay it off in the first place. For those who pay off each month, we'll all just switch to debit cards like bubba.

[powderman]

I heartily DO NOT reccomend mastercard. I've had a card 30 years or more. I was late on ONE payment when I had a heart attack and open heart surgery. The bill and check, made out in a stamped envelope was in my wifes purse, in all the confusion she forgot to mail it. One late payment in over 30 years and they kicked the rate up to around 30% and refused to lower it. We don't use it anymore. I have no use for  thieves. POWDERMAN. 

[BBF]

Canadian regulation are tougher on those rip-off credit card bank rates but not on personal loans, Sears Card or similar which can get so close to 30% it is criminal IMO.The standards Visa& Mastercard are just below 20 %. My own Visa is coupled to a Line of Credit which bases the rate on the Prime Rate + whatever you can negotiate. We do less then 5% for some time now.

[45-70.gov]

Canadian regulation are tougher on those rip-off credit card bank rates but not on personal loans, Sears Card or similar which can get so close to 30% it is criminal IMO.The standards Visa& Mastercard are just below 20 %. My own Visa is coupled to a Line of Credit which bases the rate on the Prime Rate + whatever you can negotiate. We do less then 5% for some time now.

freedom  isn't free



they should have a right to charge what ever is agreed  to
you have a right  not to give them your business
if  you think  they are making so much  money......buy  their stock



i pay my account in full bringing my balence  to zero every  month

if  i don't have it i use ELOC  at under 3% to cover  my overdraft

so  i don't care  what the rate  they charge  is

[PartsMan]

None is best, but like they said that always comes with a catch.
My first card was only 2% a month!

Not paying interest for 30 years doesn't make you a good customer.

I am surprised that they have not lowered your rate.
they usually do that and raise your limit to entice you to carry a balance.

[dukkillr]

Canadian regulation are tougher on those rip-off credit card bank rates but not on personal loans, Sears Card or similar which can get so close to 30% it is criminal IMO.The standards Visa& Mastercard are just below 20 %. My own Visa is coupled to a Line of Credit which bases the rate on the Prime Rate + whatever you can negotiate. We do less then 5% for some time now.

freedom  isn't free



they should have a right to charge what ever is agreed  to
you have a right  not to give them your business
if  you think  they are making so much  money......buy  their stock



i pay my account in full bringing my balence  to zero every  month

if  i don't have it i use ELOC  at under 3% to cover  my overdraft

so  i don't care  what the rate  they charge  is

Fantastic post. 

I was on a caribou hunt in September with 6 other guys from the Midwest.  All 7 of us carried the Cabela's Club Visa.  Honestly how can you go wrong?  Never carry a balance and get free guns every once in a while with the points?  My last Model 12 was free and I'm about to enough points for a heavy barreled .223 that I've always wanted.

[pastorp]

There you go dukkillr, I like the air miles but guns would be nice as well.  Regards

The card company makes money even if you don't pay any interest. They make it on the merchant.

[PartsMan]

The card company makes money even if you don't pay any interest. They make it on the merchant.

True but only 2-3% one time.
They would like to ad  another 1-2% every month forever.

[dukkillr]

There you go dukkillr, I like the air miles but guns would be nice as well.  Regards

The card company makes money even if you don't pay any interest. They make it on the merchant.

Here's the way I look at it:  I've got to buy X gallons of gas and spend Y dollars on food and whatever else in a given month.  If I pay cash, check, or debit card I get nothing.  If I put it on my Cabela's card I get something.  It's the same cost to me either way...

[ShadowMover]

I'm also a Cabelas card user. I pay the card off every month and carry a zero balance. I get free stuff from their catalog as the points rack up. If you plan to keep a zero balance it won't cost you anything.  I think Cabelas makes their cut from the retailers who have to give a couple of percent fee to use the card.

I agree with those that would rather not have a credit card, but they are a necessary evil. You can't rent a car without one, and they make cheap purchases over the internet possible. Just try buying an airplane ticket with cash.!! ( That could be a whole subject in itself)  Cash is king, but it doesn't travel over a phone line very well.

My opinion is that you should pay off any credit card debt , as you will make or save more money doing so than if you invested it. This is especially true if you are paying the rip-off rates. To rewrite the old phrase, " A penny saved is two cents earned after taxes" :-)

[45-70.gov]

Fantastic post. 

I was on a caribou hunt in September with 6 other guys from the Midwest.  All 7 of us carried the Cabela's Club Visa.  Honestly how can you go wrong?  Never carry a balance and get free guns every once in a while with the points?  My last Model 12 was free and I'm about to enough points for a heavy barreled .223 that I've always wanted
====================================
that  is one of  my cards  too

i charged $40k  in one year  at work
they re-imburse me when i turn in the tickets...like a cash advance  to  me
i got  my crimson trace laser grip on my smith 640  free  thanks to my boss

been  using the gander mountain  card  mostly because we  have a store  here
        just got  a lighted fishing  pole free   at gander