All sorts of factors play a role in the amount of interest you pay on a credit card rate. One influential factor is the federal funds rate, which impacts a number of interest rate trends, including that of credit card APRs.

Other factors that affect it include:

  • The type of APR. Variable credit card APRs change depending on an index they’re referencing, meanwhile, non-variable credit card APRs don’t depend on a reference rate and are therefore more stable.
  • How you use the card. Your credit card issuer might charge a specific APR for balance transfers and another rate for standard purchases.
  • Type of credit card, such as a rewards credit card or an exclusive black card.
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