Question
question about credit cards????????
I currently have $1,000 in credit card debt which I will be paying off within a week or 2. My trans union score was 636 a month ago and the score stimulator said if I pay off all $1000 my score will be 700 something. I want to get another credit card and make small purchases every month on both to build my score. I recieved a pre qualified offer from orchard bank and everything looks good except the apr is 16.99% (my current card is 12%) If I wait a few months after I pay off my debt will I be able to get a card with a lower apr % or if I get the 16.99% one will the apr go down if my credit score improves or will it not make a difference?
3 weeks ago - 2 answers
Best Answer
Chosen by Asker
Good to hear that you're paying off the $1000. My advice to you would be to continue to use the card you paid off, but use it AND pay it off each month. If you charge on it and pay it off for 6-9 months, you should be able to call in and have your apr lowered FROM 12%, because they'll want you to carry a balance and make money in interest from you. I wouldn't recommend opening the account with Orchard. They specialize in credit cards for people with not-so-good credit and you will probably pay more in the end to use it. They sent you an offer with a rate 5 points higher than what you're already paying. I would say thanks but no thanks to paying 5% more.
Source(s)
I'm a lender at a major bank
by Craig
3 weeks ago
Asker's Rating: 
Other Answers
It may cost a little but to build your score, paying off the $1,000. would be better for your credit score if you made payment over 4-6 months. That way youb show you pay off, your bills on payments. After that pay all your bills on a credit card, through direct payments. Most utilities, Mortgage, car payments, insurance, can be paid by a monthly charge to your credit card, and you only have to pay one bill each month. If you pay your bill off each month, it does not really matter what the % rate is. You might want 2 credit cards. One for most of your bills, and one for emergencies. Most credit cards allow you to raise your limit every 6 mo. When I had a big bills I had 3 credit cards. 1 had a credit for $1,500, 1 for $3,500, and my major one was for $15,000. After I sold most of my property, I cut the $15,000 down to $5,000. And canceled the 1,500 card. Hope this helps.
by papasteve- 3 weeks ago