By: Ishan Mukhopadhyay May. 28, 2018
APR is the annual percentage rate that indicates the interest you pay for borrowing money on your credit card. Raltin recently analyzed credit card survey data for agreements made in 2017. The findings showed that the highest APR in the country is charged by 1st Financial Bank USA for their Visa card, at 30.90%. The second highest APRs in the list are associated with a Mastercard offered by CorTrust Bank, N.A., and Legacy Visa offered by the First National Credit Card union, at 29.90%. Capital One Platinum Mastercard offered by Capital One Bank (USA), N.A., ranks third at 24.99%.
This analysis by Raltin was conducted using data from the Consumer Financial Protection Bureau, which requires all credit card companies to fill out a standard survey. Through this tool, the organization obtains key information such as the institution’s APR, late payment fees, index, grace period, and other variables.
|Visa card from 1st Financial Bank, USA||30.90%|
|Mastercard from CorTrust Bank, N.A.||29.90%|
|Legacy Visa card from First National Credit Card union||29.90%|
|Capital One Platinum Mastercard from Capital One Bank (USA), N.A.||24.99%|
|Visa card from Credit One Bank, N.A.||24.90%|
Visa card from by 1st Financial Bank USA: This card has a median APR of 30.40% for the last 3 years. It increased from 30.15 % in 2016 to 30.90% in 2017, to settle back at 30.40% by 2018. The grace period offered was consistent at 24 days until 2017. In 2018, it increased to 25 days. The late payment fees have remained constant at $27. The annual fee decreased by $1 in 2018, from $25 to $24.
Mastercard from Cortrust Bank, N.A.: Although the APR associated with this card is high, customers who have used it report that they are happy with the automatic increase in credit card limits, the penalty fee waiver for first-time defaulters, and the customer service. The most significant change in the plan policy came in 2018, when the grace period was increased from 25 days to 75 days. The annual fees charged also reduced significantly from $75 to $25.
Visa card from First National Credit Card Legacy credit: The Legacy Visa credit card was offered only once in the last 4 years by this bank, in 2017. The rest of the time, they offered a credit card called Legacy Clear Card. The APR has remained the same for both the credit cards in the last 3 years. The only change effected has been in the grace period, which increased from 25 days to 75 days, in 2018. According to customer reviews, this credit card is one of the better subprime credit cards. A subprime credit card is offered to people who have a substandard credit score or have poor credit histories. Typically, these cards come with a considerably high interest rate.
Platinum Mastercard from Capital One Bank (USA), N.A.: This credit card charged no annual fee until 2017. It charges a 24.99% variable APR, but customers gain access to a higher credit line if they make their first 5 monthly payments on time. The best feature of this card is that it has a $0 fraud liability in the event that it is either lost or stolen.
Raltin’s insights into the policy details of the most expensive credit cards in USA aim at keeping customers up to speed with all the necessary information, so that they can choose the card that’s right for them.