The APR is often determined upon opening the card. Student loans, mortgages, personal loans, and auto loans also carry interest rates. It's basically what you pay to borrow money. If you carry a balance on your credit card from month-to-month, your credit card APR, annual percentage rate, is going to be how much money you are paying in interest on that money you borrowed and are carrying on your credit card. Today, we're going to talk about annual percentage rate, also known as APR, and how it impacts your credit health journey as well as understanding how your credit card interest rate and your APR could mean the difference between controlling your debt or your debt controlling you. I'm Tonya Rapley, financial educator and Chase Slate Edge financial expert.Īnd today, we're going to talk about something you might not know a lot about but should. How Interest Rates Impact Your Credit Journey – Text Alternative Script – TIME: 1:56 You want to make sure that you keep a low utilization on each card, as well as your overall credit portfolio.īy keeping your utilization lower, that has more of a likelihood to positively impact your credit score, which could make experiencing those major life financial milestones a lot easier. You have a card that has a $1,000 limit, and you're using $300 of that card, your percentage of utilization is 30%.
Your utilization is essentially your credit limit versus how much of it you're actually using. When we think about your credit score, your credit score is based on a variety of factors, and one of those factors is your utilization. Your credit health is important for a variety of reasons, but it's also important because it helps you make major life milestones, such as buying a home, buying a car, starting a business, or anything that requires you to borrow money. Hi, I'm Tonya Rapley, and today I want to talk to you about how your utilization can improve your credit health. “Purchases” do not include balance transfers, cash advances, travelers checks, foreign currency, money orders, wire transfers or similar cash-like transactions, lottery tickets, casino gaming chips, race track wagers or similar betting transactions, any checks that access your account, interest, unauthorized or fraudulent charges, or fees of any kind, including an annual fee, if applicable.Ĭredit Utilization – Text Alternative Script – TIME: 0:59 Any other increase in your credit limit within this period disqualifies you for this offer. Your account must be open and not in default when we attempt to increase your credit limit. If you qualify, please allow one to three months for your credit limit to be increased. If you make purchases totaling $500 or more through the first statement after the first 6 months from account opening, and have made all payments on time, you will be automatically evaluated for a credit limit increase based on our credit criteria. same page link return to footnote reference ** Credit Limit Increase “Anniversary year” means the year beginning with account open date through the first statement after the anniversary of your account open date, and each 12 months after that. “Purchases” do not include balance transfers, cash advances, travelers checks, foreign currency, money orders, wire transfers or similar cash-like transactions, lottery tickets, casino gaming chips, race track wagers or similar betting transactions, any checks that access your account, interest, unauthorized or fraudulent charges, or fees of any kind, including an annual fee, if applicable. Your account must be open and not in default when we attempt to decrease your APR. If you qualify, please allow one to two months for your APR to be reduced. See Pricing & Terms opens in a new window for pricing details. Your APR reduction could be less than 2% depending on your APR at the time of review.
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Your APR can only be reduced through this benefit until it reaches 9.74% plus the Prime Rate, which is 3.25% as of. If you make purchases totaling $1,000 or more during an anniversary year, and have made all payments on time, your account will be automatically reviewed for a 2% reduction of your APR on purchases, balance transfers, and My Chase Loan (“APR”) based on our credit criteria. Same page link return to footnote reference * APR Reduction
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