The average interest rate for credit cards (annual percentage rate or APR) is 16% for most cards and 13% for low interest cards as of June 2020. In June 2019 it was at 18%, so interest rates are considerably low right now.
As long as you pay the credit cardoff in full before the due date, you won’t need to pay the APR.
The APR is calculated using the US Prime Rate and adding the bank’s margin. The U.S prime rate is the base rate on corporate loans posted by 10 of the largest banks based on 3/16/2020.
Generally, lenders cannot change the APR for 12 months, but it can increase if the APR is a promotional offer.
Companies must give 45 days before changing terms and conditions.
Credit card fees are the annual fees the credit company charges your account in order to keep the account open.
If your credit card’s APR is high, you can transfer the debt onto a transfer balance card.
Stay tuned for the next article to learn more about transfer balance and other types of credit cards.
2 thoughts on “Credit Cards Quick Facts”
Linda says:
Never knew what APR or Prime Rate meant before this! Thanks for the new article and looking forward to Part 2!
Never knew what APR or Prime Rate meant before this! Thanks for the new article and looking forward to Part 2!
Thank you!