What is the Prime Rate of a credit card today?

joniaroamJeff

I am 18 now and credit cards are suddenly every where. I want to choose something with a low Annual Prime Rate(APR), but I can't do that if I don't know what is "The Norm". I have been told to be careful, because many Introductory Rates seem to have a low APR at first, but they will often skyrocket after three to six months.
But my overall question remains: What is the Prime Rate of a credit card today?

BugsyBrowne

unfortunately mate you will have to start off on a high interest credit card,
Have you got any credit history what so ever,think you will have to start on a sub-prime card vanquis-capital one..
think with you mate your credit card will have a sky rocket APR to start off with and will stay like that until you build up some history....

fozmcfc

If you've little or no credit history you are very unlikely to get a card with a decent rate APR which generally range from 15.9% to 19.9%.

You are more likely to be accepted for a Vanquis, Aqua or Capital One card which will have a rate between 34.9% and 59.9%. These cards offer low limits for those with bad or no credit history.

If you end up getting one of the 3 cards above then once you've shown you can manage a credit card properly and keep within the limit then you will have more success in 18 months to two years.

The only company who may give you a card other then the 3 above, will be your own bank as they will know your finances.

Don't apply for too many cards too quickly either, otherwise you will look desperate to lenders and will damage your credit rating from the off.

Jon_B_2

Don't always assume that you need to have had a sub-prime card before you go for a mainstream one.

I got my first credit card in July last year when I was 21. I got accepted straight away on a Halifax standard mastercard, just with the long term higher rate of 14.9% which is considerably lower than the likes of Vanquis. My only credit history consisted of mobile phones and two overdrafts.

Although at 18, you may want to think about whether you want and can afford a credit card just yet.

BugsyBrowne

Jon_B wrote: »

Don't always assume that you need to have had a sub-prime card before you go for a mainstream one.

I got my first credit card in July last year when I was 21. I got accepted straight away on a Halifax standard mastercard, just with the long term higher rate of 14.9% which is considerably lower than the likes of Vanquis. My only credit history consisted of mobile phones and two overdrafts.

Although at 18, you may want to think about whether you want and can afford a credit card just yet.

We are just saying people at your age need to build up a bit of credit history b4 you start applying for a mainstream card as this would give you a better chance when applying,as for you jon b the OP is 18 not 21,and for you saying you got a higher rate of 14.9% think you were very lucky mate....

chattychappy

PS APR = "annual percentage rate" (not "annual prime rate")

Paying interest on a credit card is a bit of a mug's game unless 1) you've got a low rate, OR 2) it's an emergency and we're talking about payback within a couple of months.

By "low rate" I'm probably talking <10%. All arbitrary of course and just my opinion.

On that basis I wouldn't worry too much about the rate - just pay off each month and pay no interest at all.

izools

Jon_B wrote: »

Don't always assume that you need to have had a sub-prime card before you go for a mainstream one.

I got my first credit card in July last year when I was 21. I got accepted straight away on a Halifax standard mastercard, just with the long term higher rate of 14.9% which is considerably lower than the likes of Vanquis. My only credit history consisted of mobile phones and two overdrafts.

Although at 18, you may want to think about whether you want and can afford a credit card just yet.

As other's have said Jon B, you're clearly in a different position to OP. You had three years experience with overdrafts and mobile phones before getting your Halifax card. OP doesn't have that