What is The Interest Rate on Your Credit Card Debt?

[Lorizael]

If it's simply better than a credit card, what's the catch?

[KrazyHorse]

It's a bit less convenient and they probably apply a bit more of a filter in terms of creditworthiness.

[Asher]

My unsecured line of credit is 7%

You can also usually get higher limits with lines of credit.

[Asher]

If it's simply better than a credit card, what's the catch?

It's not intended for direct consumer spending (though I can pay from the LoC through my debit card...). It's meant for short-term loans, essentially.

You get approved for a certain amount and can lean into that to pay off bills, buy something big, etc.

[KrazyHorse]

7%? That seems low. Nonconforming mortgage rates are near 6% in the US.

[Asher]

PCFinancial. Prime (2.25) + 4.75%

My credit rating is north of 800, which may help.

[KrazyHorse]

Ah, it's a variable rate. Makes sense then. The 6% for mortgages is 30 year fixed. Should have thought of that.

[Asher]

Once I buy a home it'll be even significantly lower. Which will be very nice.

[Lorizael]

PCFinancial. Prime (2.25) + 4.75%

My credit rating is north of 800, which may help.

Mine is only 750ish. And until the last few years, I didn't have much credit history.

[Asher]

Check out your bank's website. You'll save a lot of money paying off credit card debt with your line of credit.

I applied for mine years ago online and it took 5 minutes, got approved within the week.

750 is still a very good rating.

[MikeH]

16.8 or so... Like Rah, use it when convenient, especially whilst abroad and for purchases needing protection and pay off my balance every month. For a significant purchase I'd get a personal loan at about 7% or so.

[Japher]

and for purchases needing protection

she said she was clean

[Wezil]

I chose the higher interest rate for the better reward dollars deal. A real no-brainer decision since I never carry a balance.

That's what I'm trying out with the 17% card. No balance so I don't pay the rate but I am curious how many reward dollars I can accumulate.

[rah]

Over the years I've accumulated over 2500 dollars worth of BEST BUY gift cards. (hence all the PC purchases) Best Buy wouldn't normally be my first choice in PC vendors but the price was right. And the timing seems to work out that when I've accumulated enough for a new PC, it's about time for one.

[KrazyHorse]

I usually get gift cards to Barnes & Noble. I spend money there anyway, so the cards are effectively cash back.

AmEx (my primary card) gives me 1% of total spending (50$ gift card to B&N = 5000$ on credit card).