quatrapiller
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Capital One is a good company to go with for your first credit card. They have a good buyer protection plan and are very strong in fraud protection. 16.97% may seem high, but for you would be fine. Good luck, and don't spend too much - remember that you will have to pay interest on any part of the bill that you cannot pay off. Don't just pay the minimum. |
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Chef Bob
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Yes!
If you can practice paying cash, except for a house or a car, you will be MUCH better off in life.
Learn the difference between what you want and what you need and life will be MUCH easier for you.
And, you can take that to the bank! |
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rainsinger
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16.97% is fairly average for a standard rate on a credit card if you are working with "normal" credit. The thing is, a lot of the time you can get a card that has 0% for a short time, or other little initial benefits like that.
The important thing though is not so much the % rate, but any other fees. If there are NO annual fees, no monthly fees, no "extra" fees for certain types of usage, etc... then the % rate doesn't matter.
You only are going to be paying interest if you don't pay off the credit card each month, and let me tell you... if you do that on purpose at 18, you WILL get yourself into credit problems later on. Things build up very fast, and it is very dangerous to start doing that early on. |
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computerguy103
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I have a Capital One credit card, and I have not had trouble with the company. If the card has no annual fee and no service charges, then you will probably be fine, since you say it is for credit building and you are not going to put much on it.
I am going to echo some of the previous comments and say: Pay off the balance every month. If you pay the bill within the grace period, there is NO interest. If you wait, you are going to be paying a lot more.
Since this is your first credit card, treat it like cash or debit: If you do not have the money, do not spend it. Charging more than you can afford is going to get you into trouble. |
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lee m
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Yes, that's VERY high interest; home loans are running about 6-7% right now. |
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ronnie
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That is not too bad but still higher than you want. Big thing to look for too is if they are going to charge you enrollment fees every year. You don't want that. I have a Capitol One platinum card and have had no issues with it. I also carry a Citi bank and like them as well. |
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Maegwynne
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yes its very high.
Capitol one are a big bank, please be very careful if you are getting into credit cards. Why not start with gas cards or store cards? |
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ed
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Shop around. You should find one closer to 12%. With excellent credit it could be less. |
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Red
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That's really high. How do you know you have good credit? Have you pulled your own report? Your best bet is to be a co-signer on someone else's card (like your parents) to help you establish credit without having to actually purchase anything. They can add you to the account but not even give you a card. That way you can get better rates and don't have the temptation to spend money that you don't have.
Avoid the credit trap and find other ways to go about it. I started with a Capital One card with a high interest rate and never had problems with it but I also managed it responsibly. |
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al
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It would be in the middle. If you miss a payment that will double or triple. Beware the Credit Cards. |
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idefix
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that's unbearable. Usurious interest rate. |
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RICHARD S
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if you pay off the balance there is no intrest charge |
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Thatoneguy
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It's a little high, but there are higher rates then that if you are looking into getting a credit card. It's not to bad, though. I don't do anything with Capital One, so I'm not sure. |
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Estrella
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I hope you have already pulled your credit report. Most 18 year olds don't have good credit. But if you do, you are paying a high interest rate now...
When did you get the card? If you got it to establish credit, then you probably got a high interest rate then... if you have already established good credit, I would say drop it ASAP and get another one.
When I say drop it, I mean don't use it for a while, DON"T CANCEL... If you close it you're score goes down. Use it once in a while and send the payment right away... that keeps the line open... (The longer the accounts are open and having no late payments makes your score go up).
Also, I don't know if you are having problems with capital one or if you're looking to apply there. But a couple weeks ago I went to a seminar about credit reports and one of the credit couselors mentioned that the credit card company that makes scores go down the most is Capital One. I don't know what are the requirements to apply and to be approved, but apperantly many people get approved regardless of their credit history. One of the factors to calculating credit is LIMITS. EX: When you are given a credit card the bank sets a limit of money you are able to spend. Lets say you're limit is $500. If you go above 50% of your limit your score starts to drop at some point. So lets say you spent $200.
You have now spent 40%. This is good. However Capital One will report your highest balance as your limit. So on the credit report it will say High Limit $200 High Balance $200, which is 100% and that is bad., your score drops immediatly. |
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Mommy7
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I think it is high, but considering your age you can't have to much credit to be that good under your belt. When I bought my first new car I had good credit but not to much, I was a bit older. They offered me 16% interest and as hard as it was I walked away. The next day they called me with 10%. Good luck. And yes I had Capital One and for me they were wonderful. It was my first card, I wish I could remember my interest rate though. |
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loveholio
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since you are young, your credit history may be short.
i would suggest that you use credit wisely and pay off the balance every time you use it. then the interest rate wouldn't really matter.
if you keep doing this, your credit score will increase and you will find loads of offers that feature lower interest rates. |
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whosajiggawhat?
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its high but it dosent matter if you pay your balance off in full each month. make that your only option. if you dont have the cash dont buy it. if you dont, then before you buy anything add 17% to the price and ask yourself if you still want it. |
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Scott B
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I have the Capital One No Hassles Miles card that I recently opened and my rate is over 18%. I have excellent credit and only got the card for the airline miles. I pay it off every month so the interest rate is not relevant to me. If you plan to pay off your balance in full each month, you should look into getting any kind of "benefits" card that best suites you, however if you plan on carrying a balance you can definately do a lot better than that 16.97% |
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skooter
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Hate Capital One!! That is very high. Especially if you have good credit. Have you already applied for the card and got it? If you have don't cancel the card. Use it but only for an amount you can pay off every month so the card doesn't go dormant and you get a good credit rating and you do not have to pay the interest! Do not mess up!! Find yourself a better interest. And don't apply for the card and accept before you know what the interest is. If you are not clear about the credit game you should go pick up a book on it at the book store.
Don't co-sign with anyone. This will not help you establish your credit. A car loan is the best way to establish your credit. ANYTHING can ruin your credit! Owing too much money can ruin your credit. Paying your bills before their due date looks good. You can get a credit card with a lower interest rate by guaranteeing the amount of the credit card limit. By actually purchasing a limit. Paying $500 or $1,000 for a card. that would be your limit. You would still be required to pay on time!! This possibly would give you leverage on the interest rate. |
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dawn18417
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Get the card and go charge about 100 dollars on it then cut the card up and throw away,then pay 10 dollars a month for a year until it is paid off and this will establish a credit payment history which i believe you are trying to do for the future.In about a year right before you pay this card off apply for a new one,the rate will probably be lower at that time because of your good payment history.Clearly you will pay a little interest but it will not kill you,as long as you follow the plan i laid out here for you. |
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Flyboy
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It all depends upon who the lender is and what the funds are for. This rate is below average for credit card balances and very high for a secured (auto, home) loan through a bank. It sounds like you are asking about a rate from Capital One (What's in your wallet, right?). This is a credit card so the rate is a little below average for credit cards. You can shop for a better card, though.
Since you are young I'll give you some sound advice: Use a credit card to charge things if you like but pay the balance off each month to avoid finance charges. If for some reason you have to carry a balance for several months always make the largest payment possible each month until paid. Ignore the "minimum due" number. There is nothing companies like Capital One love more than people with sound credit who make minimum payments. This is how they get the heaps and gobs of money they need to run those cute commercials!
Oh, and each month take 10% of your take home pay and put it into a savings account and don't touch it except maybe later to invest in stocks, a business, home, etc. If you do this starting at your age you will end up at 65 as a multi-millionaire. If you don't do it and end up paying the "minimum due" you will end up at 65 essentially being flat-*** broke. |
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droopydog88
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Yes, are you willing to pay $16.97 for every $100.00 you borrow, that is highway robbery. Here is what you need to tell this lender: I'm sorry that interest rate in not acceptable to me, you are going to have to do better than that if you want my business. After they come back with a better rate, once again ask them this: Is that the best you can do? They will once again come back with a better offer, and once again you are going to say: Is that actually your best offer? Once you have asked them to reduce your interest rate 3 times, you should be at a much better interest rate. Trust me I use this method everyday to purchase items, I usually get things 50-75% off of what the original offer price was. |
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Jenny K
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Sounds high to me! I am assuming this is for a credit card or personal loan. You are probably getting a higher interest rate because you dont have much credit established yet. If you dont really need the money, I wouldnt take out the loan. I would not get the credit card either. They just get you into trouble. |
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P*Kitty
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thats pretty high for an interest rate |
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Joe Cool
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Hey PandaGirl = this isn't a black and white matter. It depends on what if any credit rating you have, whether someone is co-signing with you, what limit you want to have, what perks like airline miles - overdrawn - warranty extension - theft protection are attached.
Someone is always going to have trouble with credit and with a company as big as C1. On the other hand, they have a solid reputation on the Street and they would not have a zillion cards out there if they didn't do a decent job for most of their customers.
This sounds like a square deal. Note I did not say "fair". That interest is good compared to others, but outrageous in terms of reality. Don't ever pay it. Pay things off! |
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AustinoBambino
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Yes, that is too high. Pay with cash whenever possible. |
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Saundra L
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yes, that's high. My cards are at 6.9% |
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mahree
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YES IT'S HIGH....for anyone not just an 18 y/o...shop around for different financial institutions. |
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ani1899
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Very high! |
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the_one
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i work at a car dealership and deal with these questions everyday....yes it is a high rate. BUT what is it for? While you may have good credit you may not have the type of credit that you need to make a certain purchase. You could have excellent credit card readings but if you have never had a car loan you will get a HIGH rate. Thats because it is considered "car credit"!!!!! i would suggest you try a credit union they tend to have more competetive rates!!!! Good Luck!!!! |
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Yahoo Answer Rat
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if it's a credit card , for an 18 yr old no |
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