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Variable APR vs. Fixed APR — What’s the Difference?

By: John Ulzheimer, 1/2/2020

When you’re shopping for a new credit card, you probably pay close attention to the annual percentage rates (APR) of the cards you’re considering. The APR is important because if you choose to carry a balance from one month to the next, the APR is used to determine the cost of servicing your debt. What you may not realize, however, is that your APR can possibly change over time. Whether your credit card features a fixed APR, meaning it likely won’t change, or a variable APR,... read more »

APR vs. Interest Rate: Is There a Difference? (April 2024)

By: Marcie Geffner, 4/18/2024

Borrowing money often involves fees. One such fee is interest, which is calculated as a percentage of the amount you owe. The percentage is the interest rate. For example, if you borrowed $1,000 for one year with an interest rate of 4%, you'd owe $40 of interest. An interest rate that's calculated on a yearly basis is known as an annualized percentage rate (APR). An APR always includes interest. It may also include other fees related to the loan. For example, if you applied for a... read more »

Understanding Credit Cards: A Beginner’s Guide (April 2024)

By: Marcie Geffner, 4/16/2024

Similar to your first job, car or apartment, your first credit card is an important milestone on your journey from youth into adulthood. To do adulting right, you'll want at least one card in your own name. While you can manage your personal finances without any cards, you'll find life in the grownup world is much easier with them. Cards can help you shop online, rent a car, book an airline ticket, reserve a hotel room, set up cellphone service, and more. Cards for beginners usually... read more »

What Is a Credit Card Utilization Rate?

By: John Ulzheimer, 11/28/2023

The world of credit is filled with countless terms and acronyms that you probably will not hear in normal conversation. One such term you’re likely to come across when reading about credit scores is “credit card utilization rate” or, more formally, “revolving utilization ratio.” For the purposes of this article, let’s agree to refer to it as your utilization ratio. Although utilization ratio may sound confusing on the surface, it’s actually not at all difficult to... read more »

6 Smart Money Moves for Couples

By: Andrea Woroch, 1/22/2019

Money and romance don’t always mesh. In fact, fights over finances are often the main cause of tension in a partnership and can lead to resentment and breakups. Considering most people find managing their own personal finances stressful, it’s no surprise that throwing another person into the mix can make things more emotional and complicated. In fact, a survey on relationships and personal finances from LendEdu found that around 50% of individuals reported finances to be the... read more »

What is a Credit Card Balance? Transfer to 0% (April 2024)

By: Ashley Fricker, 4/18/2024

The word “balance” generally represents stability, whether referring to an equal distribution of weight or your mental well-being. This, of course, doesn't have quite the same meaning in regards to your credit card. So, what is a credit card balance? When you get a new credit card, you’ll receive a monthly statement summarizing the previous month’s purchases, even if there were none. In bold letters, usually somewhere near the top of the statement, you’ll see the word... read more »

What’s the Minimum Age for a Credit Card? 9 Best Beginner Cards (Feb. 2024)

By: Ashley Fricker, 1/28/2024

If you're wondering about the minimum age for credit card ownership, well, the answer isn't exactly clearcut. It depends on several factors which we will explore below. I got my first credit card when I was 18 years old. I can’t quite recall the terms associated with it -- 18 was nearly half my life ago -- but I do know that it wasn’t the best card I could have gotten at the time. That’s because a) I excitedly applied for the first offer I received and b) this was pre-Credit... read more »

3 Key Differences: Charge Card vs. Credit Card (April 2024)

By: Eric Bank, 4/18/2024

It's easy to think that "charge card" is just another way to say "credit card," but the two actually have very different meanings. Charge cards were once widely used, but the market for them has been largely conceded to American Express (Amex). Nowadays, consumers mainly turn to credit cards for their spending needs, as the rewards and perks can be very similar. In this article, we’ll discuss the major differences and characteristics of a charge card vs. credit card, and take a... read more »

How to Calculate Credit Card Interest: 3 Steps to Find Your Rate (April 2024)

By: Eric Bank, 4/18/2024

One of the most important factors in choosing a credit card is its interest rate, and it's also important to know how to calculate credit card interest. All credit cards must disclose their annual percentage rate, or APR, which expresses their interest rates in a single annual number. Almost all credit cards charge interest only on balances that you don’t fully pay off in the most current billing cycle. But how does APR translate into the amount of interest you’ll actually pay? ... read more »

3 Key Differences: Chase Slate vs. Freedom Flex vs. Freedom Unlimited (March 2024)

By: Mike Randall, 2/29/2024

As one of the largest credit card issuers in the world, Chase Bank has plenty of experience in meeting the needs of consumers. Chase knows there are different cards for different spending needs, which is why they offer a range of credit cards with a variety of features and rewards. From frequent flyer programs to cash back bonuses to attractive balance transfer offers, Chase has a credit card to meet just about any consumer or business need. Let’s take a close look at their most... read more »

How Does a Secured Credit Card Work? (+ 5 Best Cards) – April 2024

By: Ashley Fricker, 4/16/2024

I recall researching my very first credit card as a college student and seeing a lot of terms I was unfamiliar with — secured cards, unsecured cards, APRs — and one of the big questions that jumped out at me was, "How does a secured credit card work?" Thankfully, as a finance writer and through personal experience, I've become much more familiar with the credit card lingo over the years. Secured credit cards are a great resource for anyone with poor credit looking to a)... read more »

What is a Charge Card? Definition + 3 Top Cards (April 2024)

By: Eric Bank, 4/18/2024

Most Americans shop using cash alternatives. Carrying cash around is inconvenient and risky, and paying by check is often a hassle. Furthermore, cash and checks will do you no good for your online purchases, as you will need some kind of account that allows you to pay for your items electronically. One option is a charge card. Some people use this term interchangeably with credit cards, but charge cards differ from other card types in a number of ways. So, what is a charge card?... read more »

Credit One VS. Capital One – What are the Differences?

By: Eric Bank, 4/16/2024

Credit One vs. Capital One — what are the differences between these two credit card issuers? Although they sound and look alike, make no mistake that Capital One and Credit One are very different. Capital One Bank is a dominant card issuer and suits folks of all credit scores. Credit One Bank is a smaller financial institution that mostly caters to consumers with bad or no credit. Capital One has more than 60 million cardholders; Credit One has 12 million and growing. ... read more »

How to Calculate APR on a Credit Card (April 2024)

By: Ashley Fricker, 4/18/2024

Banks are notorious for making numbers complicated. Even something as seemingly simple as your credit card’s annual percentage rate (APR) becomes complex when trying to calculate how banks get that number. But not to fear — learning how to calculate APR on a credit card is possible, and we'll show you how. As a responsible consumer, you're rightfully concerned as to how this perplexing number determines what you’re paying in interest charges. We've broken it all down for you as... read more »

6 Tips: How to Increase Discover Credit Limit (March 2024)

By: Ashley Fricker, 3/4/2024

Perhaps you recently landed a nice raise at work, reduced your credit utilization, or simply, you've had your Discover card account for a while now and have always paid on time — it may time to explore how to increase the credit limit on that Discover card. As with any credit card issuer, Discover offers several ways for cardholders to request a credit limit increase on their card accounts. Below are all the options you'll need, including how to reach Discover via phone or login... read more »

6 Tips: Increase Your Capital One Credit Limit (April 2024)

By: Ashley Fricker, 4/16/2024

After you've had your Capital One credit card for a while and you've established a history of timely payments, you may be Googling terms like "how to increase credit limit." Thankfully, Captial One makes it pretty simple to request an increase to your credit limit online or over the phone. You may also select and apply for a new, high-limit card online. Here are the resources you'll need to increase your limit: Call or Login Online | Choose a New Card | 6 Tips from... read more »

6 Tips: How to Increase Chase Credit Limit (April 2024)

By: Ashley Fricker, 4/5/2024

JPMorgan Chase & Co., known simply as Chase, is one of the most popular major credit card issuers in the world, thanks in no small part to its diverse offering of rewards credit cards. And as a credit card user, increasing your credit limit can potentially deliver positive results to your credit report as your credit utilization ratio decreases. Keep reading for tips to increase your credit limit. Chase provides a couple of options to request a credit limit, which are detailed... read more »

6 Tips to Increase Your Credit Limit Today (April 2024)

By: Ashley Fricker, 4/18/2024

Are you interested in learning how to increase your credit limit? First and foremost, ask yourself why you want to increase your credit limit. If it’s to go on a shopping spree or purchase things you can’t afford without credit, stop right there. You'll need to have proven to yourself and the bank that you know how to use credit responsibly in order for them to approve you. This means that you’ve exemplified yourself as a good customer for at least 6 months. If your cards are... read more »

How to Close a Credit Card

By: Mike Randall, 8/15/2018

The decision to slim down on the plastic in your wallet can be made for a number of reasons. Maybe your card issuer raised your APR or implemented new fees. Maybe the rewards and perks just aren't there. Or maybe you've come to the conclusion that you just don’t need to carry around so many cards. No matter the reason for closing a credit card, there's more to think about than simply cutting it into tiny pieces or pushing it through your shredder. Will My Credit Score Change? ... read more »

How We Improved Our Credit Score

By: Erika Blaska, 5/24/2018

I am a credit agency’s dream — I have never made a late payment, I always pay my bills early, and I have ample savings. My husband, on the other hand, did not take his credit as seriously as I did. He missed a couple of payments, only paid the minimum amount due and even paid an annual fee for a credit card. These things did not sit well with me — we needed to initiate "Operation: Improve Your Credit Score." I was determined to help my husband raise his credit score so... read more »

Former Credit Card Junkie Goes from “Rock Bottom” to Consumer Superstar

By: CardRates.com Staff, 10/6/2015

Credit cards offer a risky combination of power and convenience. For better or worse, millions of people use credit cards every day, so much so the average household credit card debt hovered around $15,607 last September. But what happens when you let that power go to your head? Merchants start declining your cards, debt collectors call you constantly and you're left struggling to find ways to make ends meet. If this sounds like you, you're not alone. Beverly Harzog ... read more »

7 Things You Didn’t Know About Credit Card Numbers

By: CardRates.com Staff, 5/24/2018

Think you know all about that ubiquitous little piece of plastic you carry in your wallet? Most of us look at our credit cards on a regular – even daily – basis, but how much attention do we really pay to them? I’m sure we all realize every credit card has a unique string of numbers that is used to identify our individual account data, but that little number printed on your card holds a lot more information than just that. 1. What the first digit means - Major Industry... read more »

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