How much interest is charged on credit card?

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The amount of interest charged on a credit card varies depending on several factors, including the card issuer, the type of card, the cardholder’s creditworthiness, and the current market interest rates.

Credit card interest rates are typically expressed as an Annual Percentage Rate (APR). The APR represents the annualized interest rate that applies to outstanding balances on the credit card.

As of my last update in January 2022, the average APR for credit cards in the United States ranged from around 14% to 25%. However, rates can be significantly higher for individuals with lower credit scores or for certain types of credit cards, such as rewards cards or cards with introductory offers.

It’s important for credit cardholders to understand the terms and conditions of their specific credit card agreement, including the APR, how interest is calculated, and any fees associated with the card. Additionally, making timely payments and managing credit responsibly can help minimize the amount of interest charged on a credit card.