What is a good APR for a credit card?

A good APR for a credit card is relative. It depends on the type of card and your credit score. If a card’s APR is below the current average according to the Federal Reserve, it’s probably a good one.

How is credit card interest calculated?

Interest is calculated on a daily basis and charged only if you carry debt from month to month. To calculate interest, first convert your APR to a daily rate. Then figure out your average daily balance and multiply your daily rate and the number of days in the billing period.

When is the best time to pay my credit card bill?

As long as you pay before the due date, you’re fine. If you carry a balance on your credit card from month to month, or if your balance regularly exceeds 30% of your credit limit, you might benefit from paying early.

What should I do if I find someone’s credit card?

Either turn the card in to staff at the location where you found it, or call the credit card company to report it.

What is a cash advance?

A cash advance allows you to use your credit card to get a short-term cash loan at a bank or ATM. You’ll have to pay it back, and your bank will charge fees and interest on the cash. Cash advances are costly so it should be an emergency option only.

Credit Card Basics

A credit card lets you borrow money from a bank to make purchases. You have 25-30 days to pay the money back. If you need longer, you’ll be charged interest — a percentage of the money you owe — on top of what you borrowed. Some credit cards also provide valuable rewards and perks when used responsibly.

Get started with credit cards

Credit cards 101

Credit card interest calculator

When to use your credit card

Featured Video

4 credit card mistakes you might not know you’re making

Some credit card mistakes are well-known and easily avoided — like missing a payment and incurring a late fee — yet many people still get tripped up. Other mistakes aren't as obvious. Sara Rathner talks about common missteps that may cause trouble.