What Are Credit Card Interest Charges? | Discover | Credit Resource Center

You may know that credit cards charge interest, but, what exactly does that mean? Here, Discover explains the basics of credit card interest charges.

Discover Credit Glossary: https://www.discover.com/credit-cards/resources/credit-card-glossary/
Discover Resource Center: https://www.discover.com/credit-cards/resources/

Credit card interest charges are a percentage of your unpaid balance, called an annual percentage rate, or APR. If you carry a balance, you’ll also be subject to interest charges as well. That’s why it’s good practice to pay your balance in full each month. Comparing credit card interest charges before opening a new card may help you choose the card that will charge the lowest interest rate. Taking advantage of introductory offers, like 0 percent APR, can help minimize interest charges.

Responsibly using your credit card may also help you minimize the interest charges you have to pay.