Title:
Credit Card Interest Rates - APR
Word Count:
327
Summary:
As you are most likely already aware that credit card interest rates can
be very high with rates of 30% annually, depending on your credit
history.
Keywords:
credit card, credit card interest rates
Article Body:
As you are most likely already aware that credit card interest rates can
be very high with rates of 30% annually, depending on your credit history
and credit card issuers are getting more and more diligent watching for
late payments and over limits and may raise your interest rates and lower
your credit limit because of it.
The annual percentage rate (APR) is the interest rate you will pay if you
carry over your balance from month to month, take out a cash advance, or
transfer balances from another credit card. If your like most who
sometimes may carry over a balance each month, you should be more
interested in a credit card that carries a lower interest rate, but the
lower interest rate means you need a good credit score. Credit card
companies may charge a yearly fee in addition to the interest rate. Many
card issuers, including most of the largest credit card issuers, have
started lowering interest rates to below the 18 to 19 percent levels that
were common through most of the 1980s and early 1990s.
If you have unpaid balances from previous months, there may not be a
grace period for your new purchases. The grace period can help you avoid
finance charges by paying your balance in-full before the due-date.
There is usually one annual percentage rate (APR) for purchases and
another for cash advances (usually the highest), and yet another for
balance transfers.
The Federal Reserve System surveys credit card companies every six months
and has a easy to understand explanation of commonly used credit card
terminology, and a survey of major credit card companies which is updated
twice a year. The Federal Reserve plans to require credit card companies
to give consumers at least a 45 day notice before they can raise interest
rates and to provide clearer info on the fees. The Federal Trade
Commission also explains credit card terminology but also has information
on where and how to file a complaint.