Is this an error? This seems like an error.

May 17, 2019 6:20 PM

14.24% - 18.24% APR for Purchases. Is this normal? Pre-screened Credit Card Offer Edition

I don't make much. I've never made much. My net worth is approximately zero dollars. But I do pay my bills on time and always have. My credit score is ~750 these days, depending on the reporter. I have 2 regular credit cards and one store credit card. I get several offers for pre-screened and/or pre-approved credit cards a week. I usually take a quick look at them before shredding 'em but I got one this week that gave me pause due to the low APR rate for purchases and I wondered if this was normal. My initial though was that it was an error.

It's for a well-know card that rhymes with "This Blubber" and the APR for purchases is from 14.25% - 18.25% which is like 7 - 10 percent lower than the offers I usually receive. So I'm burning an AskMe for a quick reality/sanity check.

I am not particularly financially savvy, nor are my friends and family, hence the question here.

posted by glonous keming to Work & Money (11 answers total)

You’re fine, welcome to the mildly usurious rates that are the privilege of those of us who have payed bills on time for years and have good scores , even if not much wealth.

Read the fine print to make sure that rate doesn’t expire after a year etc, but this does not seem too-good-to-be-true to me, in 2019, for people with good credit.
posted by SaltySalticid at 6:28 PM on May 17, 2019 [5 favorites]

If you're not carrying a balance, it doesn't matter if the rate is marginally less usurious.
posted by kate4914 at 6:29 PM on May 17, 2019 [6 favorites]

It seems about average to me for someone in the United States with good credit.
posted by Pfardentrott at 6:33 PM on May 17, 2019 [6 favorites]

Also make sure it doesn't make up the difference with an annual fee.
posted by postel's law at 6:36 PM on May 17, 2019 [6 favorites]

As someone with good credit, this is typical of the rates that I pay for a regular credit card (not a short term, special rate) My sense is that since particular card issuer has their own network and they are not accepted quite as widely, they make up for it by offering slightly better terms.
posted by metahawk at 8:08 PM on May 17, 2019

That seems fairly normal for your credit score. But there's very likely small print that says that the actual interest rate you get when they pull your credit report during the application process may be higher than the pre-screened one. They'll do whatever they need to get you to give them that level of permission. If they're concerned about your income level, they'll give you a smaller credit limit, not raise your interest rate.
posted by Candleman at 10:34 PM on May 17, 2019 [2 favorites]

Mr. Darling and I have outstanding FICO scores (apologies for humblebrag), and our national bank cards range from 13.24 to 19.99. Our credit union cards come in at 10.25 and 11.9, and I believe that's the rate for all members and not dependent on FICO.
posted by Sweetie Darling at 4:42 AM on May 18, 2019 [2 favorites]

So I pay off my credit card every month, and have slightly higher credit scores than yours, but if I were going for a new credit card right now I wouldn't even bother with anyone advertising higher than 12-14% (and 0% intro rates) and I'd be looking to play the points & cash-back and whatever games that they had for actual benefits.

Which is basically another voice in the "yes, expect better from your credit cards" chorus.
posted by straw at 10:22 AM on May 18, 2019

Nthing that this is not at all an unexpected APR for someone with good credit. With that score I wouldn't be surprised if you could find a few offers with even a slightly lower APR if you went looking.
posted by Aleyn at 11:10 AM on May 18, 2019

I literally thought your question was going to be why the rate is so high! As someone with excellent credit, I will only open a new card if they give me an intro 0% period that I need for a large purchase and can then pay off over the 12-18 month intro period. And once it goes to “regular” rates, my cards are all around 14%. Only my store cards are higher (24% ish), and I think those are outlandish.
posted by DoubleLune at 12:34 PM on May 18, 2019 [2 favorites]

Seconding DoubleLune. (If your two existing credit card issuers are gouging you, call customer service and ask for lower rates.)
posted by Iris Gambol at 1:12 PM on May 18, 2019