Re:Why are credit card rates so high?
by 2muchcoffeeman on Tuesday April 01, 2025 @07:27PM
(#43552364)
You have to be responsible though. If you can’t deal with your money that way, don’t get one. Even if you are responsible, don’t get the most credit you can. I have enough for monthly expenses and a bit extra for emergencies.
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Re:Why are credit card rates so high?
by bittercynic on Tuesday April 01, 2025 @07:42PM
(#43552423)
Why not get as much as you can? The extra headroom might be handy for some unforseen expense, and in the mean time it makes your utilization ratio better.
Re:Why are credit card rates so high?
by 2muchcoffeeman on Thursday April 03, 2025 @10:08PM
(#43577624)
Maybe it’s different in the US. My bank asked me to reduce my liabilities.
No, you actually want to get as much credit as you can, and never use it.
Available but unused credit helps your credit score.
Also, there's an addition benefit for high-credit-score credit card users: they get occasional offers for "0% interest" (with typically 3-5% upfront fees, which are in fact a fixed interest) loans, which become ordinary credit card loans (~20% interest) after 12-18 months.
Even though it isn't actually 0% interest, even 5% is an amazing credit interest rate.