Credit Card APRs Remain High Even With Good Credit
Posted on October 15, 2011
For consumers that have been working to repair credit and get finances back into a stable place will still find that applying for a new credit card will likely involve getting a high annual percentage rate despite improved credit.
Creditcards.com’s October 7th survey showed that most new credit card offers come with record high APRs, averaging around 14.97%. This is the highest APR seen since tracking began in 2007.
Credit repair efforts are more important than ever since most lenders and credit card companies are looking for excellent or better consumer scores. Those that maintain decent to good credit scores may still find it difficult to get the best interest rates on personal loans, credit cards, and mortgages. Credit repair allows consumers to up their consumer credit scores in a reasonable period of time if the work is done to correct past credit mistakes.
These credit repair efforts for consumers involves paying all creditor bills on time and not applying for new lines of credit or overextending existing lines of credit. Regularly checking credit reports and scores will enable consumers to stay involved in credit repair tasks to improve scores where they need to be.
With high APRs on credit cards, consumers who are not able to make a monthly payment obligation in full to clear the balance could end up jeopardizing their credit score and falling in debt rather quickly. Tacking on such a high percentage rate to existing balances month after month is often the trigger to one’s debt spiraling out of control.
If consumers with existing bad credit anticipate applying for a new credit, it is highly recommended that repair efforts to boost credit scores be completed prior to the application. There are some lenders, including First Premier’s Gold MasterCard which will charge upwards of 49.90% APR for subprime credit holders.
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