by 
The Curious Bag
-
There are hundreds of different credit cards available, all with different interest rates and benefits. While a good interest depends on factors particular to your situation, there are some guidelines to go by.
Identification
The average interest rate on a credit card depends on the type of card and your credit rating. To get an idea, a standard interest rate hovers around 16 percent, according to Index Credit Cards.
Features
Generally, credit cards that offer rewards, such as cash-back on purchases, add a few percentage points to the interest rate, reports Index Credit Cards. Interest rates should drop as your credit rises.
Considerations
Credit cards almost always give you a period of time to pay back the debt without paying any interest fees, reports the U.S. Federal Reserve. If you always pay the balance before the "grace period" ends, then you effectively pay no interest.
Fun Fact
In 2009, the United States Congress passed the Credit Card Act, which severely limits how and when credit card companies can raise interest rates, reports Index Credit Cards.
Tips
The BCS Alliance recommends that people looking for the best interest rates carry as low a balance as possible and reduce the overall amount of debt they have. Avoid "sub-prime" cards; they are aimed at people with a poor credit history. Also, never pay just the minimum due.
Source:
Index Credit Cards; Average Credit Card Rate Breaks the 16% Barrier
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC