Dealing with interest rates

Published 21st October 2020

Interest rates can be confusing when you're just learning how cards work. The interest rate may start out lower because of a promotional offer for new cardholders, only to increase after a few months, or because you missed a payment. Cash advances usually incur higher interest charges than purchases balances do. Interest rates also vary from card to card, but one thing they have in common is that they are usually much higher than for other types of borrowing.