Wow, that's the highest I have ever seen. I remember (and it doesn't seem that long ago) when 18% was a "bad high". I guess now, we can double that! But, hey, if those paying 35% APR subsidise my 3 - 5% CB, I guess I will selfishly accept it. 
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@ptatohed wrote:Wow, that's the highest I have ever seen. I remember (and it doesn't seem that long ago) when 18% was a "bad high". I guess now, we can double that! But, hey, if those paying 35% APR subsidise my 3 - 5% CB, I guess I will selfishly accept it.
The problem is those paying 35% tend to be those least able to afford it. We're living in a golden age of credit card rewards, but they're being paid for by a struggling underclass.
I'd be perfectly happy if they got rid of all rewards, and lowered the rates overall. Though that would require a systemic change, because as long as the current system exists, a single person choosing to opt out doesn't really help anyone.
@Anonymalous wrote:
@ptatohed wrote:Wow, that's the highest I have ever seen. I remember (and it doesn't seem that long ago) when 18% was a "bad high". I guess now, we can double that! But, hey, if those paying 35% APR subsidise my 3 - 5% CB, I guess I will selfishly accept it.
The problem is those paying 35% tend to be those least able to afford it. We're living in a golden age of credit card rewards, but they're being paid for by a struggling underclass.
I'd be perfectly happy if they got rid of all rewards, and lowered the rates overall. Though that would require a systemic change, because as long as the current system exists, a single person choosing to opt out doesn't really help anyon
I say this as someone who has in the past racked up crushing CC debt and now uses credit cards the correct way for cash back, points and travel by paying them off monthly. No one holds gun to your head and makes you charge up cards to the point you struggle or cannot pay them off. Those are choices made by them knowing the rules of the game before hand.
Peoples financial illiteracy is not the banks fault. Just look through some posts in the past in the Auto Loan section by people with mid to high 500 to low 600 scores and a $30k annual income asking about $55k plus auto loan at 18% or higher like they deserve it and have to know how to get approved somehow.
@EAT_SLEEP_JEEP wrote:
@Anonymalous wrote:
@ptatohed wrote:Wow, that's the highest I have ever seen. I remember (and it doesn't seem that long ago) when 18% was a "bad high". I guess now, we can double that! But, hey, if those paying 35% APR subsidise my 3 - 5% CB, I guess I will selfishly accept it.
The problem is those paying 35% tend to be those least able to afford it. We're living in a golden age of credit card rewards, but they're being paid for by a struggling underclass.
I'd be perfectly happy if they got rid of all rewards, and lowered the rates overall. Though that would require a systemic change, because as long as the current system exists, a single person choosing to opt out doesn't really help anyon
I say this as someone who has in the past racked up crushing CC debt and now uses credit cards the correct way for cash back, points and travel by paying them off monthly. No one holds gun to your head and makes you charge up cards to the point you struggle or cannot pay them off. Those are choices made by them knowing the rules of the game before hand.
Peoples financial illiteracy is not the banks fault. Just look through some posts in the past in the Auto Loan section by people with mid to high 500 to low 600 scores and a $30k annual income asking about $55k plus auto loan at 18% or higher like they deserve it and have to know how to get approved somehow.
We're humans, and we react to incentive structures. And the package of incentives we call credit cards are designed to lure people into carrying high-interest debt, and to blow up like a landmine when certain triggers are tripped.
Education is important, and the U.S. is terrible at both formal and informal means of financial education, but it doesn't change the way the incentives are laid out. We can either set up a system where people are encouraged toward good behavior, or one that encourages bad behavior. We currently have the latter.
I say this is as someone who spent most of my life paying for everything in cash, and who currently has excellent credit. I know how to manage money and that's reinforced by long-worn habits, so barring something catastrophic I'm at no risk of falling into any of the traps. But as a relative outsider who is still fairly new to credit, I find it remarkable how much the system seems designed to mask, befuddle, and lead people down a path of failure, one honeyed step at a time.
Some of this is due to the financial institutions, but much of it is the regulatory, economic, and social environment in general. The consumer mentality, saving being denigrated and punished, artificially low interest rates, and more all contribute.
@markhs777 wrote:The days when Simmons Bank used have an APR of 6% are long gone, even they have 28% rates. No point in complaining. As you say just pay in full and the rate is 100% irrelevant.
To be fair, the current (for Simmons Bank) 28.4% maximum interest rate is for a secured card (Simmons Bank Foundation Visa). That maximum interest rate is not much worse than the current 23.5% maximum for the Simmons Visa or the current 25.5% maximum for the Simmons Rewards Visa Signature, though.
My current interest rate for my Simmons Bank Visa is 12.5%, for those "interest"ed.
This DP might be an outlier. Based on Forbes, the average APR in this week is around 27.9%: https://www.forbes.com/advisor/credit-cards/average-credit-card-interest-rate/
Fico8: EX~EQ~TU~810 (12 month goal~840).