How to Compare Credit Card APRs

A credit card's annual percentage rate (APR) will determine how much money you must pay back in interest for items that you charge. A high percentage rate can cost you hundreds, and sometimes thousands, of dollars more than a lower rate. Before you sign up for a credit card, you should compare its APR to several other companies' cards.

Difficulty: Moderately Easy

Instructions

1. Find a site that allows you to look through several credit card offers. The website CreditCards.com displays different APRs from all of the major credit card companies.

2. Look at the introductory rate. Many cards will offer 0% APR for the first 6 months or longer. You must compare cards to find the longest term for this rate.

3. Examine the credit card's APR after the introductory rate ends. Some cards jump up to as high as 20 percent once the trial period ends. Choose a card that has a low APR once the trial period is over.

4. Check out the APR for balance transfers and cash advances. Each card has a different APR for purchases, balance transfers from other credit cards and cash advances. A cash advance APR will be the highest.

5. Read the terms of each card's APR. The card you choose should stay at a fixed rate and not jump up throughout the course of using the card.

Tips & Warnings

• You should compare other things besides the APR when picking a credit card. Also consider any additional fees that the card charges and its rewards program.
• Remember to check the APR that you will be charged if you make a late payment. Some cards charge as high as a 25 percent APR for late payments.

Resources

• Compare credit cards' APRs on CreditCards.com.