like for example if one card has a 9% APR and another card has 18% APR, does the card with 18% APR build your credit faster than the 9% one? (If you pay all payments on time on each one)
All a higher interest rate does is cost you more money, if you do not pay your balance in full each month.
A full credit report usually shows the maximum credit you have used for an account, credit limit (if the creditor reports that), balance due, last payment, monthly tally of no data (if you had no charges), paid as agree (a good thing), or how long it has been delinquent (if over 30 days late), along with how long the account has been open and other notes if it has been closed and why.
Some people suggest carrying a balance to help your score, but that is misdirected, because you can achieve the same effect for less money by just charging what you can pay in full each month to build a history of "paid as agreed". Avoid making larger charges unless you can pay them off within a few months.
As everybody has stated, a higher APR does not mean ones builds their credit faster. There are many factors in ones credit score. Too many to go into here.
Sounds like you are new to the "credit card" game. You should go to the FICO web site I have included to learn and educate yourself about credit. The more you know, the better off you will be.
Here is there link
http://www.myfico.com/CreditEducation/
Hope this helps answer your question and also educates.
No a higher APR does not build credit faster. APRs are not on your credit report
paying during the 0% introductory period would be the same as paying at a higher rate later on a payment is a payment, the only real thing that effects your credit is debt to credit ratio
Nope. Your credit report and your credit score only reflect how well you pay your bills. Not what your interest rate was. The interest rates of your CCs aren't even recorded in your credit report.
The only thing that can build your credit is to pay your bills on time, every time.
Not at all
A higher APR just means you get the privilege of paying more to borrow that money from the credit card issuer! LOL
No it just means you are a poor credit risk and need to pay more interest. Only one benefiting is a company.
Not one bit.
Your credit report lists how much you owe, and how much your limit is, but nothing about the interest rate.
No. Interest rate has nothing to do with how quickly one builds credit.
No. You'll just be paying a lot more interest
No a credit card with a higher APR will not help you build your credit faster. You will simply pay more money out of your pocket to use the card. It is preferable to have a card with a lower APR. No one wants to throw away money paying interest.
You need to know that the two most important factors in your scores are:
Whether you pay your bills on time.
How much of your available credit you actually use.
It's essential that you pay all your bills on time, all the time. Set up automatic payments or reminder systems so that you're never, ever late. All it takes is a single missed payment to trash your credit scores — and it can take seven years for the effects to completely disappear.
You also don't want to max out any of your credit cards, or even get close. Keeping your credit use to less than 30% of your credit limits (10% is better) will help you get the best possible credit scores — and should help keep you from getting over your head in debt, as well.
Finally, you don't need to carry a balance on a credit card to have good credit scores. Paying your bill in full each month is the best way to keep your finances in shape and build your credit at the same time.
You still have to exercise some caution, though. Look for a card with a low or nonexistent annual fee and low interest rates. For now, just get one: Opening a slew of credit accounts in a short period of time can make you look like a risky customer.
For credit scores to be generated, you have to have had credit for at least six months, with at least one of your accounts updated in the past six months.
Using your cards regularly should ensure that your report is updated regularly. It also will keep the lender interested in you as a customer. If you get a credit card and never use it, the issuer could cancel the account.
Don't charge more than 30% of the card's limit.
Don't charge more than you can pay off in a month. You don't have to pay interest on a credit card to get good credit scores. It's much smarter to pay off your credit cards in full each month.
Make sure you pay the bill, and all your other bills, on time.
A higher APR means the lender will apply a higher rate of interest to the money they lend.
Your credit history basically tells a lender how well you manage your money. That you pay bills on time; that you are paying off large debts; that you spend only the money you have, and you're managing the money lent to you by previous lenders.
It allows them to calculate the level of risk that they place their money at by lending it to you.
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