Questions regarding credit card APR

Started Feb 15, 2013 | Discussions thread
truthsforme
Forum MemberPosts: 56
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Re: Questions regarding credit card APR
In reply to dad_of_four, Feb 16, 2013

dad_of_four wrote:

truthsforme wrote:

I have another credit card, which expires in 1 more year, with no balance on it and less available credit than my "main" one with a balance and 20% APR.

I gotta say that 20% is really high. Banks today are borrowing money from the Fed at (or near) 0%, then they are loaning it to you at 20%. They charge that much because a lot of people simply don't pay their CC bill, so the banks are losing money. Call your CC company on Monday, and tell them you want a lower rate.

Next, you need to really see about reducing your expenses. That cup of coffee at Starbucks is only $1 at McDonalds. Plus the $5 you spend at Starbucks becomes $6 because of your 20% APR.

Next, take every spare penny you have, and use it to pay-off that 20% CC. Every payday you should log-on to your CC website and make a payment that you can afford. Now let's say you can only afford to make the minimum payment of $80 a month, and let's say you get paid every other Friday. Once your paycheck is deposited into your bank (and you should be using direct deposit), log-on and pay $40. After 2 weeks, you will have made the minimum payment of $80, but your balance will shrink so-much faster!

Indeed I got a wake-up call recently and started getting things in orderĀ 

Thankfully, everything should be payed off withing 2 weeks. I just learned (thanks to the folks on this thread), that if I keep my balance at $0, my APR will remain at 0%. That should be no problem anymore because I'll be using my CC with 20% APR only for the netflix and hulu subscription, and perhaps in case of emergency.

I was told by a friend, that you build credit much faster if you pay half the balance in the beginning of the month, then the other half 2 weeks later, as opposed to paying the whole thing in one shot. That must be false, right? lol

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