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Subject:  Re: It's time. Date:  1/25/2019  2:42 PM
Author:  aj485 Number:  312414 of 312987

I looked over the past couple years of statements and the rate has gone up around 0.25% every 2-4 months. Uncool.

It's not really 'uncool' - it's the terms that your cards have, which you need to understand. Most cards are based on prime rate. Since the prime rate is currently 5.50%, the 13.99% cards are probably prime + 8.49%, the 17.44% card is probably prime + 11.94% and the 17.49% card is probably prime + 11.99%

The Fed has been increasing the 'Fed Funds rate' (the rate that banks charge each other), which, in turn, drives the prime rate (the rate that banks charge their most favored customers) up. A year ago, the prime rate was 4.5% and 2 years ago, the prime rate was 3.75%. During the financial crisis, the prime rate bottomed out at 3.25% in Dec, 2008 and didn't increase to 3.50% until Dec, 2015, so there was a long period of very low rates. Even now, we are at the low end of what used to be considered 'normal' rates, so don't expect that your credit card rates will go down any time soon, unless you are successful at asking for a lower rate. And each time the Fed announces an increase in rates, you can expect your credit card rates to increase, too.

The 0% remains at zero and I found out it will remain at 0% until August.

Have you found out what rate it will increase to? You can probably look at the terms on your card's website to find out what they are adding to the prime rate to calculate the rate, so you'll have an idea. Keep in mind that any increases in the prime rate between now and August will also increase the rate that it will jump to.

E fund and car sale are a bit complicated at the moment- it will work out and in time I'll have an e-fund number of $750. I'm still not crazy about the idea, but I'll do what I'm told. After all, "I heard it on the internet, lol! :)

Yes, this advice is, as always, worth what you paid for it. Seriously, I'm glad that you are going to have a small e-fund, and $750 should be enough to keep you from having to take backwards steps for many things.

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