How To Win Against Credit Card Interest Charges

Written by iMoney Editorial

There are several important considerations when it comes to credit card interest rates that you should know before you start charging up your year-end shopping spree on your credit card.

The interest rate is the annual cost of borrowing money, usually on a credit card or loan. Interest rates are also known as an annual percentage rate or APR.

This infographic explains what interest rate is, and what it means to your credit card outstanding balance. It is not at all simple or straightforward for the uninitiated.

We have outlined these quick tips in the infographic:

1. How interest charges work
2. How to avoid interest charges
3. How banks charge for overdue or late payments
4. What happens when you just pay the minimum each month

Make sure you understand how your credit card interest charges work so don’t miss a single payment, avoid late or missing payments and don’t just pay the minimum amount each month!

If you keep to these golden rules, you will not need to fall into the credit card trap that everyone else talks about.

This article was first published in 2015 and has been updated for freshness, accuracy and comprehensiveness.