What are credit card interest rates and how do they work?

What are credit card interest rates and how do they work?

Credit card interest rates are the fees charged by credit card companies for borrowing money. They are usually expressed as an Annual Percentage Rate (APR). When you carry a balance on your card, interest is calculated based on this rate.

How is the interest calculated on my balance?

Interest is typically calculated using your average daily balance. The daily interest rate is applied to your balance each day, and then summed up over the billing cycle.

What can I do to lower my credit card interest rates?

You can lower your interest rates by paying your balance in full each month, negotiating with your credit card issuer, or transferring your balance to a card with a lower rate.

Are there any fees associated with credit card interest?

Yes, there can be fees such as late payment fees or cash advance fees, which can increase your overall cost if you carry a balance.