Q: I have a high interest rate on one of the credit cards I am currently using. Will that have a negative impact on my score?
A: Your high interest rate isn’t going to impact your credit score simply because the information isn’t going to appear on your credit report. Credit card companies typically only report the account and its accompanying balance each month, which means the credit bureaus have no idea if you were given a prime annual percentage rate or a much higher one by your issuer.
“Credit scoring systems don't know if you're paying a competitive 7.9% or a terrible 29.9%,” says John Ulzheimer, CEO of SmartCredit.com. “The golden rule about credit scoring systems is that if it's not on your credit report, it can't have any influence over your credit scores.”
Of course, a high APR can have a negative influence on your bank account, so those with decent credit may want to look into getting theirs lowered. You can find some suggestions for how to do so in this MainStreet article that outlines how to score a lower APR in 2012.
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