What are the different types of credit card interest rates?

The interest rate on purchases, or purchase APR, is often charged when a credit card debt is not paid in full at the end of each billing cycle.

The interest rate you pay on balances transferred from loans or other credit cards to the relevant credit card. Balance Transfer APR. For a predetermined period of months when using most cards, you start out with a low rate (often even 0%) before switching to the standard APR.

Introductory APR: Once an account has been opened, this incentive allows credit card businesses to offer a particularly low rate for a set period of time to new applicants. This rate is constantly lower than the average APR for each card, which is frequently an introductory 0 percent APR.

When using your credit card to make a cash withdrawal from a bank or ATM, the cash advance APR is used.

If a due date is missed, a penalty APR could be imposed. The regular interest rate will normally be applied after six months of on-time payments, even if this rate is more extreme than the average APR (it can reach 29.99 percent).

You may learn more about credit card interest rates by using our many resources. We suggest reading the following if you're curious to understand more.
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