subject: Why High APR Cards are Sometimes OK [print this page] Why High APR Cards are Sometimes OK Why High APR Cards are Sometimes OK
You would almost never hear anyone advice anybody to sign up for a high APR credit card, after all, by just looking at the numbers it makes absolutely no financial sense to sign up for such a card. In some cases though, it actually makes sense to sign up for a high APR credit card.
The only time you should actually sign up for a high APR card is if you have a very bad credit history, and you want to start rebuilding your credit rating. Of course, even in this case, you should apply for a credit card that has the lowest interest rates possible, but with a poor credit rating, that would be next to impossible, so that you are really left no option but to get a high APR card.
When you do apply for a credit card and get approved for the high APR card, you should however remember that the real reason why you got the card is to rebuild your credit rating. What this means is that you should get it, but use it only with great discretion. As much as possible, try not to use it all. And if you do use it, stick to purchases that are worth only what you can pay off by the end of the month. Remember that it is not a low apr credit card, which means you get very steep interest rates if you don't pay off your entire balance every month. It also goes without saying that you should also always stay within your credit limit. If you use the card for small purchases only, and do so rarely, you shouldn't even have to worry about this problem. You should also always make payments on time. The purpose of the card is for you to show creditors that you can use your card wisely, so do that with this card.
Rebuilding your credit rating to the point where credit card companies will give you low credit card rates will take time. However, if you are really committed to getting a good credit history, you will stick to your plan by learning how to use your new credit card wisely and slowly regaining your creditors' trust. It will be worth it in the end since it will impact not just the credit card rates you will be approved for, but your dealings with all other lending institutions.
