Interest Rates Went Up. Now What?
A Fed rate increase doesn't require an economics degree to understand. Here's a practical framework for checking your card's APR and taking control of your debt.
GenZ will spend $50 on a cup, but won't pay off their high APR credit cards
Written by Sarah James ·
Start Building Credit
No credit history required. Apply in minutes.
SUMMARY
- A trending $50 tumbler can cost closer to $60 once high APR interest is added if bought on credit or BNPL.
- BNPL makes microtrend purchases feel affordable, but the real cost hides in the interest rate, not the price tag.
- Carrying a balance on a high-APR card quietly erases any savings from a "deal."
- TomoCredit's 0% APR structure means you're never charged interest since you can't carry a balance.
The Trend Behind the Price Tag
Many of you may have heard of the infamous “Stanley Cup/Tumbler” trending all over TikTok. Consumers that have fallen prey to this trend seem to be GenZ, many posting cup reviews all over the app. Although the tumblers do have pretty rave reviews and seem to do the job, the cost of the cup is pretty hefty. But with BNPL options, it's easy for GenZ to spend their money on microtrends.
What GenZ doesn't understand is that the cup they thought was $50, is actually near $60 with interest fees. APR awareness is important, and it is definitely more important than a $50 cup you could probably buy off Amazon for $20 cheaper.
Understanding the Real Cost
High APR and interest rates are the culprits of many microtrends from BNPL purchases. It's important that GenZ understand the repercussions of credit card debt and spending.
TomoCredit, a credit card that has 0 interest/APR and virtually allows you to never carry a balance, wants GenZ and others to be aware of BNPL while shopping. Fees rack up quickly, and the last thing you want is to carry a balance you can't pay.
Related articles
This startup helps you be credit card debt-free in 2023
This New Year, make sure you are well organized and have a plan focused on your financial goals. Here's how TomoCredit's weekly autopay feature helps users start every week debt-free.
How to Get a Perfect 850 Credit Score
If you suffer from a low or no credit score, it may be quite difficult to achieve some of your personal financial goals. According to FICO, only 1.6% of consumers have a perfect 850 score.
← American credit card debt continues to climb while GenZ is unaware of APR repercussionsHow this Startup is Making Credit Accessible to Everyone →← Back to all posts
The language used on this page is for creative purposes only. TomoCredit (or TomoBoost) does not guarantee an increase in credit score. Individual results vary based on each person's unique credit history and financial circumstances, and subscription payments are non-refundable.
Start Building Credit
No credit history required. Apply in minutes.