What's a good credit card APR?

[tipoficeberg]

I'm going to be in the market soon to get a new credit card and I'm wondering what would be considered a good credit APR? The other question I have is do I really need to be concerned about the APR at all since I plan to pay it off every month and never have a balance?

[MonkeyMama]

I don't know the answer to your first question because I don't look at APR on credit cards. The answer to your second question is that it shouldn't matter. Just depends how committed you are to not carrying a balance.

I've heard that good reward credit cards tend to have more ridiculous interest rates. Which doesn't matter if you never pay interest. (I've always just gone for the rewards).

[disneysteve]

If you are concerned with the APR, you shouldn't be getting a credit card.

If you aren't going to pay the balance in full each and every month, you shouldn't be getting a credit card.

Of course, if you are paying your balance in full, the APR doesn't matter. I honestly have no idea what the rate is on any of my cards.

[kork13]

If you are concerned with the APR, you shouldn't be getting a credit card.

If you aren't going to pay the balance in full each and every month, you shouldn't be getting a credit card.

Of course, if you are paying your balance in full, the APR doesn't matter. I honestly have no idea what the rate is on any of my cards.

I have to agree... In almost all cases, a credit card is NOT the answer for any sort of short term money needs. Interest rates are simply way too high. I honestly have don't know what all of the interest rates are on my credit cards (I never pay interest, because I pay off my statement balance every month)... But I think mine range from 11% to 20%. In general, the best APR's that you'll find on credit cards (not counting low-interest introductory offers between 0-3%) is around 9-12%. If I'm not being clear, that is an exorbitant cost of borrowing.

If you have a true need for a short-term loan, you should look at getting an unsecured loan from a bank/credit union. Rates on unsecured loans generally range from 6-10%, and the interest rates are typically fixed (unlike credit cards, where the rate is typically variable).

Really, there is no reason you should need to borrow money with a credit card, or an unsecured loan, or whatever. If your monthly expenses are too high, start cutting costs. If you're planning to make a large one-time purchase, save up the money for it over time, then buy it in cash when you have enough saved to cover it. If you have some sort of emergency expense comes up & you need a large chunk of cash all at once....you should have an emergency fund in place to cover this sort of thing.

Bottom line: Savings is WAAAAY better for you than debt.

[tipoficeberg]

If the credit card APR doesn't matter, then why is a low APR trotted out as a good benefit of a credit card?

[kork13]

If the credit card APR doesn't matter, then why is a low APR trotted out as a good benefit of a credit card?

APR's definitely matter if you carry a balance on the credit card. The problem is that you SHOULDN'T carry a balance, because it's a terribly expensive way to borrow money. You shouldn't go into a credit card intending to carry a balance. If that's the case, you should look into other ways of borrowing money. Credit cards are a tool that you should only use for YOUR benefit -- not for the benefit of the credit card company (by paying boatloads of interest).

To be clear: APR's (whether low or high) are NOT a benefit of any credit card. They're a cost. You get to choose if you're going to pay that cost, based on if you carry a balance on the credit card or not. Pay in full every month = no cost & APR doesn't matter. Carry a balance = big cost & APR definitely matters.

[Eagle]

If the credit card APR doesn't matter, then why is a low APR trotted out as a good benefit of a credit card?

I agree with what others have said. APR is a cost not a benefit. The only people who claim APR is "trotted out as a good benefit of a credit card" are the credit card comapnies charging you the interest in my opinion. The best thing to do is to avoid carrying a balance on any credit card.

Why kind of consumer debt do you have Tipoficeberg?

[disneysteve]

If the credit card APR doesn't matter, then why is a low APR trotted out as a good benefit of a credit card?

Because the average American is stupid with their money.They think that it's okay to buy things they can't afford and spend money they don't have. They use credit cards to make that possible. As long as they can pay the minimum monthly payment, they think they're doing okay.