When it pays to know your credit card’s interest rate
By Melissa Lambarena, NerdWallet
If you pay your credit card balance in full each month, then your card’s ongoing interest rate (aka its annual percentage rate, or APR) is irrelevant, since you’ll never owe any interest.
But if you tend to carry a balance from month to month, knowing where your interest rate stands is key to saving money, especially if you’re revolving several balances.
Credit card APRs can change periodically based on a variety of factors, such as the general state of the economy and your own creditworthiness, so it’s not always easy to keep up with. (A credit card issuer has the right to change a card’s interest rate on future purchases, but it must generally notify you 45 days in advance.)
But here’s why it’s helpful to be aware of the figure and how to use it to your advantage.
You can use it to recognize better options
Understanding your credit card’s interest rate can help you in spotting better ones. Locate your credit card’s APR on the card’s statement or by logging into the account online or in the app.