Understanding Credit Card Interest Rates & How To Minimize Them

Credit card interest rates, also known as annual percentage rates (APRs), are the fees charged by credit card issuers for borrowing money.

Interest rates can vary greatly among different credit cards, so it's important to compare rates before applying for a card.

The interest rate on a credit card can be either fixed or variable. A fixed rate will remain the same for the life of the account, while a variable rate can change based on market conditions.

 The interest rate on a credit card is typically higher than the interest rate on other forms of credit, such as loans or mortgages.

Factors that can affect your credit card's interest rate include your credit score, payment history, and the type of card you have (e.g. rewards card, student card, etc.).

To minimize the amount of interest you pay on your credit card, try to pay off your balance in full each month.

You can also minimize interest charges by making payments on time, as many credit cards have penalty APRs for late payments.

Consider setting up automatic payments to ensure that you never miss a payment and incur any late fee or penalty rate.

Try to find credit card that offer 0% interest rate for balance transfer or purchases for a limited time to help you pay off balance and avoid interest charges.