What Is an APR?
Swiping your credit card is easy. But if you carry a balance, paying it off could be a challenge. Especially if you don''t know your credit card''s annual percentage rate (APR). And shockingly, a lot of people don''t. In a December 2021 Bankrate study, 41% of cardholders carrying a balance didn’t know their credit card APR. And with the Federal Reserve raising interest rates , knowing your APR is important now more than ever. What is an APR? Your credit card APR, or your interest rate, is how much extra money you''ll pay on any balance you don''t pay off in full at the end of each billing cycle. This rate is typically stated as a yearly rate, and it may be a fixed rate or a variable rate. Currently, the average APR for new credit cards is 21.59%. If you don''t know your APR, you can find it in your credit card''s terms and conditions. SEE MORE The Best Cash-Back Credit Cards Most credit cards operate on a variable rate, meaning the rate can change, often rising or falling in tandem with interest rates set by the Federal Reserve.
What Is an APR?
Swiping your credit card is easy. But if you carry a balance, paying it off could be a challenge. Especially if you don''t know your credit card''s annual percentage rate (APR). And shockingly, a lot of people don''t. In a December 2021 Bankrate study, 41% of cardholders carrying a balance didn’t know their credit card APR. And with the Federal Reserve raising interest rates , knowing your APR is important now more than ever. What is an APR? Your credit card APR, or your interest rate, is how much extra money you''ll pay on any balance you don''t pay off in full at the end of each billing cycle. This rate is typically stated as a yearly rate, and it may be a fixed rate or a variable rate. Currently, the average APR for new credit cards is 21.59%. If you don''t know your APR, you can find it in your credit card''s terms and conditions. SEE MORE The Best Cash-Back Credit Cards Most credit cards operate on a variable rate, meaning the rate can change, often rising or falling in tandem with interest rates set by the Federal Reserve.