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TIL the average credit card interest rate is over 22% right now
I was reading a report from the Federal Reserve yesterday and saw that the average APR for existing accounts hit 22.63% in the last quarter. That's way higher than I realized, especially when my savings account is paying less than 1%. Has anyone found a good strategy to actually lower their rate, or is it just about paying it off ASAP?
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lunaf679d ago
Honestly, the real trap is how they calculate interest. It's not just on what you owe now, but on your average daily balance. So even a small purchase can make your interest charge jump up for that whole month. I've found the only way to truly lower the rate is to call and ask for a lower one, and be ready to move your balance if they say no. They'll sometimes give you a break if you have a long history of on-time payments. Otherwise, yeah, it's a race to pay it off before the interest eats you alive.
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xenaf519d ago
Exactly, that average daily balance thing is such a killer. I put a tank of gas on a card I was trying to pay down and it felt like the interest on the whole thing reset. Calling them to ask for a lower rate actually worked for me once, but I had to threaten to leave. It's crazy how you have to play hardball just to get a fair shake. Makes you want to just cut the things up sometimes.
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