Category: Credit Card Interest Rates
Credit Card Interest Rates, often referred to as Annual Percentage Rates (APRs), represent the cost of borrowing money on a credit card, expressed as a yearly percentage. These rates can vary widely based on factors like the cardholder’s creditworthiness, the issuer’s policies, and the type of card. Interest is typically charged on any outstanding balance that is not paid in full by the due date, meaning that carrying a balance from month to month can lead to accumulating interest charges. Credit card APRs can be fixed or variable, with variable rates changing in response to market conditions, and can significantly impact the overall cost of borrowing. Understanding these rates is crucial for managing credit card debt and minimizing financial costs.