Question To Take the Leap or Not?

[Barbisi]

I recently received a Capital One offer for a new credit card solely in my name , but the interest rate is 30%.
Of course, I am already an authorized user and my credit score is around 700, but I don't currently work outside the home. I certainly don't need extra credit now.
What do you gurus, justbroke , shipo , Carmella, etc. all think?

[justbroke]

That's too high for me. I'd rather go to a credit union. My credit union gave me their lowest rate (9.90%) with a 720 score!

[Zombie13]

I think our rate is higher than that, with our credit union.

[shipo]

The other side of the coin is 30% is pretty typical these days, that and if you keep it paid off, then the interest rate is irrelevant, even if it was something like 75%.

[Zombie13]

Yep, true that. Balance carry over is baaaaaad... boo hiss!

[justbroke]

The other side of the coin is 30% is pretty typical these days, that and if you keep it paid off, then the interest rate is irrelevant, even if it was something like 75%.

With the prime lending rate at a whopping 8.25% I agree with this assessment. However, I would think PRIME + 8% for a non-reward card should be normal, and about 13% over PRIME for a reward/cashback card. (I just got a Sam's Club MasterCard at 20.9%... and it's a cashback card.)

You don't want to know what I received from PenFed as my purchase APR. It's so good I don't want anyone to know. Yes, it's way below 10%.

[Zombie13]

Oh do tell, please share!

[justbroke]

Way less than 10% and that's all I will say.

[shipo]

With the prime lending rate at a whopping 8.25% I agree with this assessment. However, I would think PRIME + 8% for a non-reward card should be normal, and about 13% over PRIME for a reward/cashback card. (I just got a Sam's Club MasterCard at 20.9%... and it's a cashback card.)

You don't want to know what I received from PenFed as my purchase APR. It's so good I don't want anyone to know. Yes, it's way below 10%.

My PenFed card has the purchase APR at 17%; oddly enough it is by far my least used card these days (only one small charge over the last 12 months).

[Zombie13]

For some reason I don't use the PenFed that much; I should probably buy some gas or something to keep it 'alive'.

[justbroke]

A friend was just offered a PETCO MasterCard at 34.74%. I was shaking my head. (They do have a lower rate for excellent credit and that is 25.74%. But their store card is also 34.74%.) These rates seem like what you'd get from a predatory card.

(34.74% or 25.74% when you open your account, based upon your creditworthiness. This APR will vary with the market based on the Prime Rate.)

[Zombie13]

this is probably a typical interest rate for pets... they don't have 'jobs' after all.... LOL!

[shipo]

I just looked at the "Purchases" interest rates of all of my cards, here they are ranked from lowest to highest:

• PenFed Platinum Rewards: 17.99%
• CapitalOne SavorOne: 26.99%
• TDBank TDCash: 28.24%
• Chase Sapphire Preferred: 28.24%
• Chase Freedom Unlimited: 28.24%
• CapitalOne Quicksilver: 32.24%

Comment #1: I find it odd CapitalOne has my second lowest and by far my highest interest rate.
Comment #2: the Chase Freedom Unlimited card has an unused 0.00% option through November of 2024, and yeah, it will stay "unused".

[justbroke]

Who would have thought that tying the APR base to the PRIME rate would every yield a 30% card?

[Barbisi]

justbroke and shipo , it is always entertaining when you two banter about such mundane questions as CC interest rates, LOL!
I am thinking I should perhaps wait until I am rebucketed after the BK13 finally falls off our credit reports-any thoughts on that guys?

[justbroke]

Your score could actually go down.

I like Credit Unions. They are a much more discretionary lender than the big banks.

[shipo]

justbroke and shipo , it is always entertaining when you two banter about such mundane questions as CC interest rates, LOL!
I am thinking I should perhaps wait until I am rebucketed after the BK13 finally falls off our credit reports-any thoughts on that guys?

It depends...

Regarding CapitalOne...

• I applied for my 1st CapOne card (Quicksilver) less than a year after my discharge and got a $3,000 starting limit.
• I applied for my 2nd CapOne card (SavorOne) several months after my bankruptcy fell off my reports and got a starting limit of $2,000.

Then there is Chase (who was burned in my Chapter 13)...

• I applied for a Chase Amazon card about eighteen months after my discharge, DENIED!
• I applied for a Chase Sapphire Preferred card about a year after my bankruptcy fell off my reports and got a starting limit of $11,700.
• I applied for a Chase Freedom Unlimited card six months later (just this last summer) and got a starting limit of $23,600.

In the words of the late piano great Fats Waller, "One never knows, do one?"

[Zombie13]

Roll the Dice, as they say. Interesting; you just don't know til you try.

[Carmella]

Barbisi I don't know if I would get that particular card, but it would be good to get a card in your own name. Not that anything will happen to Zombie13 but it's best to get your own. My friend's mother who is in her 80's when her husband passed away was only on her husband's cards. She lost every credit card when he passed away even though she used them for years. She had to get a new credit card in her own name after he passed away. Crazy. My husband doesn't have a card in his name yet and I keep getting scared off with the high interest rates. I have one in my name with a high interest rate and actually just had a balance for the first time because.

And I don't think I mentioned this on this board, but my new job ended up a disaster and actually closed down so I was out of a job, but only for 2 weeks. We knew it was coming so we were all looking for jobs. I got a part time job since no full time were available, but now about a month into the job I was offered full time. Anyway that's why I have a balance on the card! It's getting paid off ASAP since I don't want any balances especially at high interest rates.

[Barbisi]

Carmella , sorry to hear about the job woes and I'm glad to hear you found something full-time for now at least!
Christmas time is the least desirable season to be unemployed - Zombie13 was laid off in November 2002 and that was the real start of our multi-year odyssey to eventual BK13 in 2017.
I will look into this card because as you rightly point out I do have to establish independent credit in my name. Luckily, I do have a Colorado CU one already in my name as a co-applicant.

[Zombie13]

Carmella - Hey! And yeah, glad to hear you got out of the chaos. In a way, it's a good thing to have a balance on a card, then pay it off. Happy Holidays!

[womanonfire]

The other side of the coin is 30% is pretty typical these days, and if you keep it paid off, then the interest rate is irrelevant, even if it was something like 75%.

Yep! That's what I'm doing now. I'm in chapter 13 until Jan. 2027 and I have four credit cards. The lowest interest rate on any card is with Ally at 19%. It's zero balance because my Venmo (26.49%) gives me the best rewards. It's pretty sweet to pay off the balance each month and pay zero interest but earn cash back. I've earned $881.85 so far this year in cash back and my credit rating is over 759. 🍾🎉🥳