FYI: APR rates

[KIR]

WOW, I had no idea how different the APR rates are for my different (6) credit cards. Why so many? They offered me something for free or a discount if I applied for one. I only use them sparingly and generally pay the balance within a month, thus not having to pay a finance charge. I get a military discount with one of my cards.
Currently the APR for my six cards vary from a low of 15.15% to a high of 26.99%. I planned on getting one of my driveways redone as the roots of a tree have cracked and pushed up the concrete across it. Waiting to hear from a neighbor for the company they used to get a new driveway. Mine is about 1/3 the size of theirs. Come January, I plan on paying off the balance of the credit card I am going to use. It is my bank card.
Hopefully someone can use the info I learned this eve...

 

[NikA]

Seems like you'd do better with a personal loan or home equity line of credit. Either should be well below your lowest APR unless you're talking to a loan shark.

 

[KIR]

A local bank said they only gave home equity lines of credit for a minimum of $10K I paid it off within 2-3 months. Personal line of credit from a bank? I am really ignorant about financial stuff. I am usually a cash type of person, but I will check on it. Thanks NikA

 

[Kevin]

I know everyone is in a different situation, but I’ve always read and have been told that multiple credit cards are what causes problems.

We have just one credit card. But I swear, every store I go into these days wants customers to sign up for their store credit card. For example Home Depot yesterday. People Get free delivery and $100 off for signing up for a credit card. The problem is, $100 bucks won’t go very far at Home Depot.

But then it’s too easy to pay the minimum balance on one card thinking they will catch up next month. Not talking about you KIR, as you said you pay off your balance.

But then the next month, their car might break down or water heater fail. It’s easy to get trapped by credit cards in this way.

Long time ago I worked with a guy who had to declare bankruptcy because of multiple credit cards. But before he did that, he was spending money like crazy. So he did it to himself really.

I’ll stick with one credit card. But that’s just me and my wife’s style. (Grammar police???) (my wife and I’s style?)

 

[Kevin]

Oh wait…. That’s just the style for my wife and I.

 

[Johnnu2]

The absolute LAST "PLACE" a person should borrow from is a credit card.....

J.

 

[Dan in MI]

Oh wait…. That’s just the style for my wife and I.

WHOOP! WHOOP! WHOOP! Grammar police, pull over. I learned to determine what to use by removing the second person. “That’s just the style for... me” therefore “ that’s just the style for my wife and me”
You may return to current financial discussion.

IMO - most any loan above a credit card. Take your time a educate yourself.

 

[RoninPA]

We have a few credit cards (8), mainly due to places I was stationed in the USAF (26 years) and my second career as a field engineer where I traveled all over the world and now as a FFL. If/when I use any of them, I pay them off each and every month. I truly could not, right this minute, tell you what the interest rates are on them. When we were a young married couple we did get into a lot of debt (when we got married we had nothing, not even a bed, our first dining room table was a folding table and chairs). After a number of years we decided that was enough and said we are going to get out of debt. It took a a good number of years and a lot of scrimping and saving but we did it and said we would not get this way again. Some people say that having credit cards and keeping them paid off can hurt your credit score, however, our credit score is 839 and has been at that level for over 10 years.

 

[Dave P.]

I have two cards and have no idea of the interest rate because the balance gets fully paid monthly.
Only reason I have two is that one is a relatively low credit limit and is used for all on-line transactions
and fuel purchases etc. sort of a "burner" card type of thing. If hacked not a big deal to replace it and move on.
The other card is basically used for auto-pay type of things and major purchases in person at known businesses, never
on-line or restaurants, gas stations, small local purchases etc. That one would require some work to update the
auto-pay accounts if hacked or stolen.
I realize either one could be hacked but figure doing the above lowers the odds a bit for me and give a backup if
one was lost or eaten.

 

[Watertender]

My wife pays her cards off fully every month. I have several interest deferred purchases at Home Depot for our kitchen expansion but I pay those off before the interest hits. I do have a balance on one card that I pay much more than the minimum on. That balance will be paid fully before the end of the year. My mortgage rate is low and with a payment of less than $500 a month including escrow it's worth keeping. My truck payment is on a low interest loan and I have paid ahead on that. My grandpa used to say that interest is a tax on fools and the older I get the more inclined I am to agree with him. I am one of those crazy people who knows to the penny how much I owe. After I was ripped off and credit taken out in my name by a drug addicted family member I keep a very close eye on my financial situation. If I don't look out for myself then who will?

 

[Goldstar225]

Back in the 80's my young and foolish self had multiple credit cards and carried balances on each. Over the course of years I paid them off and canceled them. I now have one and only one card that has a 10% interest rate. That's all I'll ever have. I constatnly get offers for more (home depot, walgreens, wal-mart, etc..) that are immediately declined.

 

[Cholo]

Oh wait…. That’s just the style for my wife and I.

"my wife and me" Just leave off "my wife". You wouldn't say "That's just the style for I." In other cases "my wife and I" is correct.

Professor Cholo LOL

I, too, just have one CC with a high borrowing limit that gets automatically paid off every month.

 

[Dan in MI]

Some people say that having credit cards and keeping them paid off can hurt your credit score, however, our credit score is 839 and has been at that level for over 10 years.

I've not heard that one, but I do know if you cancel a credit card it hurts your credit, if they cancel it, it doesn't. Doesn't make sense to me, but I just stick all my extra credit cards in the safe and let them rot. Those I use I pay off each month. Must be working, my score is up there as well.

 

[turd]

Wifey and I learned about credit cards the hard way, as some of you have. Our credit scores now are 800 something for hers, and 785 for me. I have two cards, one for auto pay for meds, the other for major purchases ($2000 water heater recently). Both are paid off at the end of the month when they are used.

 

[eveled]

Funny how when you have their money its 20%. But when they have your money you’re lucky to get 1%

 

[GasGuzzler]

What's the R in APR?

 

[Kevin]

Annual Percentage Rate

 

[GasGuzzler]

Annual Percentage Rate

Missed my point. Now read the title of the topic again.

Kinda like in my business when I hear someone say "VIN number".

 

[Kevin]

Missed my point. Now read the title of the topic again.

Kinda like in my business when I hear someone say "VIN number".

I got it. But in my defense, I just woke up. Same with my reply yesterday at 7 something in the AM morning (although that’s not exactly the same is it?)

 

[TestEngineer]

Some people say that having credit cards and keeping them paid off can hurt your credit score, however, our credit score is 839 and has been at that level for over 10 years.

Credit reporting agencies include what they call "revolving credit lines" when they calculate your scores. So yes, keeping your credit cards paid off will lower your score. I have a few cards and only carry a balance on the one with the lowest APR. When the balance gets below the "minimum payment" amount, I use the card to put gas in my 2 trucks. That raises the balance to around $100, which keeps my credit score maxed out.

On another note, have you ever noticed how credit card rates are shown by APR, but CDs and other investments are shown by APY? some people don't know what the difference is. APR is the annual interest rate you pay, but in reality is divided by 365 and it compounds on the unpaid balance daily. APY is the annual return on your investment AFTER COMPOUNDING, which makes you think you're making more money on your investment than you really are. It's almost false advertising!

 

[PRichardson87]

Credit reporting agencies include what they call "revolving credit lines" when they calculate your scores. So yes, keeping your credit cards paid off will lower your score. I have a few cards and only carry a balance on the one with the lowest APR. When the balance gets below the "minimum payment" amount, I use the card to put gas in my 2 trucks. That raises the balance to around $100, which keeps my credit score maxed out.

On another note, have you ever noticed how credit card rates are shown by APR, but CDs and other investments are shown by APY? some people don't know what the difference is. APR is the annual interest rate you pay, but in reality is divided by 365 and it compounds on the unpaid balance daily. APY is the annual return on your investment AFTER COMPOUNDING, which makes you think you're making more money on your investment than you really are. It's almost false advertising!

"Almost" is the key word and why it's legal.

 

[gjgalligan]

If you would be able to pay off the CC loan in January why not just wait until then to replace the driveway as you save your money to pay cash?

 

[Bad Barlow]

If you would be able to pay off the CC loan in January why not just wait until then to replace the driveway as you save your money to pay cash?

My choice of CC ,since I pay it off in full every month, is based on the best "cash back" option. It adds up,because we use it for virtually everything we buy,except for the increasingly more common Cc "use fee" ,of 3-4%.

 

[gjgalligan]

My choice of CC ,since I pay it off in full every month, is based on the best "cash back" option. It adds up,because we use it for virtually everything we buy,except for the increasingly more common Cc "use fee" ,of 3-4%.

My understanding of the OPs post was he was going to pay with a CC and pay a few months payments to complete the deal.
I was suggesting a way to avoid any interest.

 

[Bad Barlow]

My understanding of the OPs post was he was going to pay with a CC and pay a few months payments to complete the deal.
I was suggesting a way to avoid any interest.

Maybe he wants to avoid putting in a driveway in a Maine winter?

 

[gjgalligan]

Maybe he wants to avoid putting in a driveway in a Maine winter?

Could be and I had thought of that but that would be up to the OP to advise us on.

 

[Tenbore]

What's the R in APR?

Rip-off, obviously.