What do I need to know about annual percentage rates for credit cards?

When you open a credit card, the cardholder agreement you sign should outline your annual percentage rate (APR). This is the amount of interest you will owe on your credit card purchases. APR is expressed as a yearly rate and it includes any additional fees such as late payment fees, annual membership fees, and balance transfer fees. The APR will vary from card to card, so it is important to compare rates and fees when choosing a credit card. The APR will affect how much interest you will owe each year and it can also affect how much you owe in the long run. Higher interest rates will mean that it will take longer to pay off your balance, while lower rates will mean that you will save money and pay off your credit card balance sooner. Some credit cards offer introductory APRs that are lower than their typical rate. This can be a great way to save money if you plan on carrying a balance. However, it is important to note that the introductory rates may only last for a certain amount of time, so make sure you understand when the rate will expire. If you have any disputes or complaints about your APR, it is important to know that credit card dispute resolution laws in Washington protect you from excessive or unfair interest rates. The Consumer Financial Protection Bureau’s Office of Fair Lending is responsible for enforcing these regulations and investigating complaints. If you feel like your credit card APR is too high, you can contact them to find out more information.

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What do I need to know about annual percentage rates for credit cards?

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