“`html

Understanding Credit Card Interest Rates with O1ne Mortgage

At O1ne Mortgage, we prioritize consumer credit and finance education. While we may reference our partners, our goal is to provide an objective view to help you make the best decisions. For any mortgage-related needs, feel free to call us at 213-732-3074.

Understanding How Interest Rates Work

Credit card interest rates are expressed as an annual percentage rate (APR). Unlike installment loans, where the APR includes fees and other charges, credit card APRs are typically the same as the interest rate. Most credit cards offer variable interest rates, which can fluctuate based on market benchmarks. A few cards offer fixed rates, which remain constant as long as the account is open.

Types of Credit Card Interest Rates

Credit cards usually have multiple APRs for different uses:

• Purchase APR: The interest rate on purchases. You can avoid interest by paying your balance in full each month.
• Balance Transfer APR: The interest rate on balance transfers, typically the same as the purchase APR but without a grace period.
• Intro APR: Many cards offer a 0% intro APR on purchases or balance transfers for a set period.
• Cash Advance APR: The interest rate on cash advances, usually higher than purchase and balance transfer APRs, with no grace period.
• Penalty APR: The interest rate if you miss a payment by 60 days or more, often the highest rate on a credit card.

Where to Find Credit Card Interest Rates

Federal law requires clear disclosures about interest rates and fees. You can find a card’s purchase and balance transfer APR on the card’s landing page. For detailed information, look for the Schumer box, usually found in the rates and fees section.

What Is a Good Interest Rate for a Credit Card?

A good interest rate is typically below the average tracked by the Federal Reserve. For example, in the first quarter of 2023, the average interest rate was 20.09%, up from 14.22% in 2018. Comparing multiple cards can help you find the best rate.

How to Compare Credit Cards with a Range of Interest Rates

Most credit cards offer a range of interest rates based on risk-based pricing. To compare, find the middle rate in the range. For example, a card with a 17.99% to 27.99% range has a middle rate of 22.99%. Compare this with other cards to find the best fit.

How Does Your Credit Score Affect Your Interest Rate?

Your credit score is a major factor in determining your interest rate. Higher scores usually result in lower rates. However, issuers also consider income, other debt, and available credit.

How to Get a Low Interest Credit Card

If a low interest rate is your priority, consider these steps:

• Deprioritize other benefits: Cards with many perks often have higher APRs.
• Improve your credit: Better credit scores can lead to lower rates.
• Consider a credit union: They often offer lower rates than banks, with a maximum APR of 18%.

Ultimately, a wide range of credit card options exists. Getting prequalified can help you narrow down your choices and understand the rates available to you.

Compare All Card Features When Shopping Around

While interest rates are important, they are just one of many features to consider. If you pay off your balance in full each month, you might focus more on rewards and other benefits. Use O1ne Mortgage’s comparison tool to find the best credit card for your needs.

For any mortgage-related inquiries, call O1ne Mortgage at 213-732-3074. We’re here to help you make informed financial decisions.

“`