Category: Credit Cards

The Chase Sapphire Preferred and Chase Sapphire Reserve are the two most popular travel credit cards in the U.S. Both earn Chase Ultimate Rewards points, both have strong travel protections, and both let you transfer points to airlines and hotels. The choice between them comes down to whether the Reserve’s extra benefits are worth the higher annual fee.

Chase Sapphire Preferred vs Reserve: Side-by-Side Comparison

Where the Reserve Wins

The $300 Travel Credit

The Reserve’s $300 annual travel credit applies automatically to the first $300 in travel purchases each year — flights, hotels, Uber, Lyft, parking, tolls. You do not need to register or apply for it. If you spend at least $300 per year on any travel, this credit reduces your effective annual fee from $550 to $250.

Airport Lounge Access

The Reserve includes Priority Pass Select membership with unlimited free visits for you and two guests. A Priority Pass membership alone costs $429 per year. If you travel through major airports frequently, this benefit alone can justify the card’s cost.

Higher Point Value

Reserve points are worth 1.5 cents each in Chase Travel, compared to 1.25 cents for the Preferred. On the 60,000-point sign-up bonus, that difference is worth $150 more in redemption value. On ongoing spending, the Reserve earns more on travel (3x vs 2x) and benefits more from the higher per-point value.

Where the Preferred Wins

Lower Net Cost for Occasional Travelers

If you travel fewer than 4–6 times per year, the Reserve’s lounge access is less valuable. The Preferred’s $95 annual fee is more than covered by the value of a single sign-up bonus. For travelers who take 1–2 trips per year and do not care about airport lounges, the Preferred is the better deal.

Better Welcome Bonus Value for New Cardholders

Both cards offer the same 60,000-point sign-up bonus, but the Preferred’s minimum spend requirement ($4,000 in 3 months) applies to both. With the Preferred, you get $750 in Chase Travel value for $95/year. That is hard to beat as a first travel card.

The Math: When Does the Reserve Pay Off?

The Reserve effectively costs $250/year after the $300 travel credit. The Preferred costs $95/year. The cost difference is $155/year.

The Reserve’s advantages over the Preferred in ongoing rewards:

• Extra 1x on travel ($10,000 in travel = 10,000 more points = $150 more in value)
• Higher point value (1.5 vs 1.25 cents) means existing points are worth 20% more
• Lounge access: roughly $100–$200 in value per frequent traveler depending on use

If you spend $10,000+ per year on travel and dining, and use lounges regularly, the Reserve math works. For most people who travel occasionally, the Preferred is the better starting point.

Can You Downgrade from Reserve to Preferred?

Yes. Chase allows product changes between Sapphire cards. If you get the Reserve and find the cost is not worth it after a year or two, you can call Chase and request a product change to the Sapphire Preferred without closing the account or losing your points. Your credit history on the account stays intact.

Note: you can only hold one Sapphire card at a time. You cannot have both the Preferred and Reserve simultaneously.

Which Should You Get?

Get the Sapphire Preferred if:

• This is your first travel credit card
• You travel 1–4 times per year
• You do not care about airport lounges
• You want to keep your effective annual fee below $100

Get the Sapphire Reserve if:

• You travel 6+ times per year and value lounge access
• You regularly spend $10,000+ on travel and dining annually
• You want the best trip protection and the highest per-point value
• You already have the Preferred and want to upgrade

For a broader look at all travel options beyond Chase, see our full guide to the best travel credit cards of 2026. If you would rather skip the complexity and earn simple cash back, see the best cash back credit cards.

Frequently Asked Questions

Is the Chase Sapphire Reserve worth $550 per year?

For frequent travelers, yes — after the $300 travel credit the effective cost is $250, and lounge access alone can be worth more than that. For occasional travelers, the Preferred at $95 is the better value.

What credit score do I need for the Chase Sapphire Preferred?

Chase generally approves applicants with scores of 700 or higher for Sapphire products. The Reserve may require 720+. Neither is guaranteed — Chase also looks at income, existing Chase accounts, and recent application history.

Can I transfer Chase Sapphire points to airlines?

Yes. Both Sapphire cards transfer points at 1:1 to United Airlines, Southwest, Air France/KLM, British Airways, and more. Hotel partners include World of Hyatt, Marriott Bonvoy, and IHG One Rewards. Transfers are instant to most partners.

What is the Chase 5/24 rule?

Chase generally will not approve a new credit card application if you have opened 5 or more credit cards from any issuer in the past 24 months. If you are above 5/24, you will likely be declined for a Sapphire card regardless of your credit score.

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Travel credit cards turn flights, hotel stays, and everyday purchases into free trips. The best ones offer sign-up bonuses worth $500 to $1,000 in travel, plus ongoing earnings that add up fast. This guide covers the top travel cards of 2026 and which one belongs in your wallet.

Best Travel Credit Cards of 2026

1. Chase Sapphire Preferred — Best for Most Travelers

The Chase Sapphire Preferred is the most recommended travel card for people who are new to points or want a single card that does everything well. It earns 3x points on dining and 2x on all travel, and points are worth 25% more when redeemed through Chase Travel. The sign-up bonus — typically 60,000 points after spending $4,000 in three months — is worth $750 in travel.

• Earning rate: 3x dining, 3x streaming, 2x travel, 1x everything else
• Annual fee: $95
• Sign-up bonus: 60,000 points (worth $750 in Chase Travel)
• Best for: First travel card, versatile points, strong transfer partners

2. Chase Sapphire Reserve — Best Premium Travel Card

The Chase Sapphire Reserve costs $550 per year but gives back $300 in annual travel credits automatically — effectively making the out-of-pocket cost $250 for travelers who use the credit. It earns 3x on dining and 10x on Chase Travel purchases. Priority Pass lounge access is included, and points are worth 50% more in Chase Travel.

• Earning rate: 10x Chase Travel, 3x dining/travel, 1x everything else
• Annual fee: $550 ($250 effective with $300 travel credit)
• Sign-up bonus: 60,000 points (worth $900 in Chase Travel)
• Best for: Frequent travelers who want airport lounge access and maximum point value

3. Capital One Venture Rewards — Best for Simple Travel Rewards

The Capital One Venture Rewards card earns 2x miles on every purchase — no categories to track. Miles can be redeemed against any travel purchase at 1 cent each, or transferred to 15+ airline and hotel partners. The $95 annual fee is offset by a Global Entry/TSA PreCheck credit ($100 every four years) and a solid sign-up bonus.

• Earning rate: 5x on hotels and car rentals through Capital One Travel, 2x on everything else
• Annual fee: $95
• Sign-up bonus: 75,000 miles after $4,000 spend in 3 months (worth $750 in travel)
• Best for: Simple earners who want flexibility without worrying about categories

4. American Express Gold Card — Best for Foodies Who Travel

The Amex Gold earns 4x points at restaurants worldwide, 4x at U.S. supermarkets (up to $25,000/year), and 3x on flights. It also includes up to $120 per year in dining credits and $120 in Uber Cash. The $250 annual fee sounds steep, but the combined credits bring the effective cost down to around $10 per year for people who use them.

• Earning rate: 4x restaurants worldwide, 4x U.S. supermarkets, 3x flights, 1x all else
• Annual fee: $250
• Sign-up bonus: 60,000 Membership Rewards points after $6,000 spend in 6 months
• Best for: People who spend heavily on dining and groceries and also travel

5. Capital One Venture X — Best Premium Card for Value

The Capital One Venture X charges $395 per year but provides $300 in Capital One Travel credits, 10,000 bonus miles on each anniversary (worth $100), and Priority Pass lounge access. For travelers who book through Capital One Travel, the effective annual fee is negative. It is the best value among premium travel cards.

• Earning rate: 10x hotels/rental cars (Capital One Travel), 5x flights (Capital One Travel), 2x everything else
• Annual fee: $395
• Sign-up bonus: 75,000 miles after $4,000 spend in 3 months
• Best for: Travelers who want premium benefits at a lower effective cost than Amex Platinum

How to Get the Most Out of a Travel Card

• Hit the sign-up bonus: Most of the first-year value comes from the welcome offer. Make sure you can hit the minimum spend requirement organically — do not overspend just to earn the bonus.
• Use transfer partners: Points transferred to airline and hotel partners often yield 50–100% more value than redeeming through the card’s travel portal. Chase transfers to United, Hyatt, and Southwest, among others.
• Stack credits: Cards like the Amex Gold and Venture X have built-in credits that effectively reduce the annual fee. Use them or you are leaving money on the table.
• Pay in full every month: Travel cards carry high APRs (20–29%). Carrying a balance turns rewards into net losses.

If you are not sure whether to get the Preferred or Reserve, see our detailed comparison in our Chase Sapphire Preferred vs Reserve guide. For simpler rewards without travel redemption complexity, see the best cash back credit cards. And if you are still building your credit score, check out the guide to building credit from scratch first.

Frequently Asked Questions

What credit score do I need for a travel credit card?

Most premium travel cards require a good to excellent credit score — generally 700 or above. The Chase Sapphire Preferred and Capital One Venture typically approve applicants with scores of 700 or higher. Amex products sometimes approve scores in the 680–700 range.

Are travel credit card annual fees worth it?

For cards with $95 annual fees, yes — if you travel even once a year. The sign-up bonus alone typically covers two to three years of fees. For premium cards with $400+ fees, the value depends on whether you use the included credits and benefits.

What is the best travel card with no annual fee?

The Chase Freedom Unlimited earns 5% on Chase Travel purchases and 3% on dining with no annual fee. The Bilt Mastercard earns points on rent payments with no annual fee. Neither matches the earning power of $95 fee cards, but both are solid options for fee-averse travelers.

Can I transfer travel points between cards?

Points can be transferred within the same ecosystem. Chase Ultimate Rewards points from a Sapphire Preferred can be combined with points from a Freedom Unlimited. But Chase points cannot transfer to Amex’s Membership Rewards system and vice versa.

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A cash back credit card turns everyday purchases into money back in your pocket. The best cards return 2% or more on everything you buy — no annual fee, no points system to decode, just a simple percentage back on every dollar you spend. Here are the top picks for 2026.

Best Cash Back Credit Cards of 2026

1. Wells Fargo Active Cash Card — Best Flat-Rate Cash Back

The Wells Fargo Active Cash Card earns 2% cash back on all purchases with no category restrictions and no annual fee. That is the highest flat-rate cash back available from a major issuer without an annual fee. There is also a $200 welcome bonus after spending $500 in the first three months.

• Cash back rate: 2% on everything
• Annual fee: $0
• Welcome bonus: $200 after $500 spend in 3 months
• Best for: Simplicity — one card, one rate, maximum return on all spending

2. Citi Double Cash Card — Best No-Fee Alternative

The Citi Double Cash earns 1% when you buy and 1% when you pay, for a total of 2% on every purchase. No annual fee, no category restrictions. The mechanics are slightly different from the Wells Fargo Active Cash but the end result is the same — 2% back on everything. Citi also allows redemption as cash, statement credits, or ThankYou points.

• Cash back rate: 2% (1% on purchase + 1% on payment)
• Annual fee: $0
• Welcome bonus: Occasionally $200 (check current offer)
• Best for: Flexibility — cash back can convert to travel points if needed

3. Chase Freedom Unlimited — Best for Bonus Categories

The Chase Freedom Unlimited earns 5% on travel booked through Chase, 3% at restaurants and drugstores, and 1.5% on everything else. The base rate of 1.5% is lower than a flat 2% card, but the bonus categories make it win for people who spend heavily on dining and travel. No annual fee.

• Cash back rate: 5% travel (Chase portal), 3% dining/drugstores, 1.5% all else
• Annual fee: $0
• Welcome bonus: $200 after $500 spend in 3 months
• Best for: Diners and light travelers who want a no-fee card

4. Discover it Cash Back — Best for Rotating Categories

The Discover it Cash Back earns 5% cash back in rotating quarterly categories (historically: gas, groceries, restaurants, Amazon, PayPal) up to $1,500 in purchases per quarter, then 1% after. At the end of your first year, Discover matches all the cash back you earned — effectively doubling your first-year earnings. No annual fee.

• Cash back rate: 5% on rotating categories (up to $1,500/quarter), 1% all else
• Annual fee: $0
• First-year bonus: Cashback Match (all first-year cash back doubled)
• Best for: People willing to track categories for maximum return

5. Blue Cash Preferred from Amex — Best for Groceries

The Blue Cash Preferred earns 6% cash back at U.S. supermarkets (up to $6,000/year), 6% on select U.S. streaming services, 3% on transit and gas, and 1% on everything else. It has a $95 annual fee ($0 intro year), but grocery spenders who spend over $3,200 per year on groceries come out ahead versus a no-fee card.

• Cash back rate: 6% groceries/streaming, 3% transit/gas, 1% all else
• Annual fee: $95 (waived first year)
• Welcome bonus: $250 after $3,000 spend in 6 months
• Best for: Families with high grocery and streaming spending

How to Choose the Right Cash Back Card

The best cash back card depends on where you spend most:

• You want simplicity: Get a flat-rate 2% card (Wells Fargo Active Cash or Citi Double Cash). Put everything on it, never think about categories.
• You spend heavily on groceries: The Blue Cash Preferred’s 6% at supermarkets beats the flat 2% cards as long as you spend at least $3,200 per year on groceries.
• You dine out frequently: The Chase Freedom Unlimited’s 3% at restaurants outpaces a flat 2% card for dining-heavy spenders.
• You want maximum return and can track categories: The Discover it paired with a flat-rate card can maximize returns across all spending.

Cash Back vs Points: Which Is Better?

Cash back cards are simpler and more predictable. A 2% cash back rate is always worth 2 cents per dollar. Points cards can offer higher theoretical value — some airline miles are worth 1.5 to 2 cents each — but only if you are willing to learn the system and plan redemptions carefully.

If you just want to earn without effort, cash back is almost always the better choice. If you are willing to optimize for maximum value, points cards (like the Chase Sapphire Preferred) can offer more. For a direct comparison of the top travel cards, see our guide to the best travel credit cards of 2026.

How to Maximize Cash Back Earnings

• Use your cash back card for all purchases you would make anyway — groceries, gas, bills you can pay by card
• Pay the balance in full each month. Cash back cards typically carry 20–29% APR. One month of interest on a carried balance wipes out months of cash back
• Use a tiered approach: a grocery specialist card for supermarkets + a flat 2% card for everything else
• Stack rewards with store loyalty programs where possible

If you are building credit and cannot yet qualify for the cards above, see our guide to the best credit cards for fair credit. And if you have existing credit card debt, see whether a balance transfer card can help you pay it down at 0% interest first.

Frequently Asked Questions

What is the best flat-rate cash back credit card?

The Wells Fargo Active Cash Card and Citi Double Cash both earn 2% back on all purchases with no annual fee. These are the highest flat-rate cash back cards available from major issuers in 2026.

Do cash back cards charge annual fees?

The top flat-rate and bonus-category cash back cards have no annual fee. Cards with very high category rates (like 6% on groceries) sometimes charge an annual fee of $95, but the math works out for high spenders in those categories.

How much can I earn with a cash back card?

At 2% cash back, someone who puts $2,000/month in purchases on their card earns $480/year. At 5% on a $400/month grocery budget, that is an extra $240/year just in groceries.

Is cash back taxed?

No. Cash back rewards from credit cards are treated as rebates by the IRS, not income. You do not owe taxes on cash back earned through normal spending.

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A secured credit card requires a cash deposit as collateral. That deposit becomes your credit limit. It is one of the most reliable tools for building credit from scratch or rebuilding after a setback.

Secured cards work almost exactly like regular credit cards — you swipe, pay your bill, and the card reports to the credit bureaus. The difference is the deposit, which protects the issuer if you do not pay.

How the Deposit Works

You typically deposit $200 to $500 to open the account. That deposit is yours — it earns some interest at many banks and is returned to you when you close the account in good standing or graduate to an unsecured card. You cannot spend the deposit directly; it just sits there as security for the issuer.

How It Builds Credit

Your payment history and credit utilization are reported to all three major credit bureaus — Equifax, Experian, and TransUnion — just like a regular card. Pay your balance in full every month and keep your utilization below 30%, and you will see your score improve.

Most people see meaningful credit score gains within 6 to 12 months of responsible use.

What to Look for in a Secured Card

• No annual fee or a low one: Some secured cards charge $35 to $75 per year. Discover It Secured and Capital One Platinum Secured both have no annual fee.
• Reports to all three bureaus: Make sure it does — some cards report to only one or two.
• Graduation path: The best secured cards offer a clear upgrade to an unsecured card after 6 to 12 months of on-time payments.
• Low or no foreign transaction fees: Useful if you travel.

What to Avoid

• Cards with very high fees that eat into your deposit
• Cards that do not report to all three bureaus
• Predatory subprime cards with processing fees added on top of annual fees

How Long Should You Keep It?

Keep the account open until the issuer upgrades you automatically or until you qualify for an unsecured card with a better rewards structure. Closing a credit account can temporarily dip your score, so transition thoughtfully.

Bottom Line

A secured credit card is one of the most accessible credit-building tools available. Use it for small, regular purchases, pay the balance in full every month, and treat it as a training ground for better cards ahead.

Credit card rewards — cash back, points, and miles — can be worth hundreds or even thousands of dollars per year. The key is using them strategically while avoiding the one trap that wipes out every benefit: carrying a balance.

Rewards cards only work in your favor if you pay the full balance every month. A single month of interest at 20%+ APR erases months of rewards earned. That is the foundation. Everything else builds on it.

Step 1: Match Your Card to Your Spending

The best rewards card is the one that earns the most on where you actually spend money. If you spend heavily on groceries and gas, look for a card that earns 3x to 5x in those categories. If you travel often, a travel card with lounge access and no foreign transaction fees may beat a flat cash-back card.

Do not pick a card based on the sign-up bonus alone. The ongoing earning rate matters more over time.

Step 2: Hit the Sign-Up Bonus

Most rewards cards offer a sign-up bonus if you spend a certain amount in the first 3 months. These bonuses can be worth $200 to $1,000 or more. Time a new card application around a large planned purchase (new appliance, travel booking, quarterly insurance payment) to hit the threshold without overspending.

Step 3: Use the Right Card for Each Category

Experienced rewards users carry 2 to 3 cards: one for groceries, one for dining or travel, and one flat-rate card for everything else. This sounds complex but it becomes habit quickly.

Step 4: Redeem Rewards Smartly

Not all redemptions are equal. For most cash-back cards, cash or statement credit is the most straightforward option. For points and miles, transferring to airline or hotel partners often yields 50% to 100% more value than redeeming for statement credit. Learn the best use of your specific program before redeeming.

Step 5: Pay Attention to Annual Fees

A card with a $95 annual fee is worth it only if you get more than $95 in value from rewards and benefits. Many premium travel cards with fees of $400 to $550 include statement credits (airline fees, hotel nights, lounge access) that offset the fee entirely if used.

What to Avoid

• Carrying a balance — interest always outweighs rewards
• Spending more just to earn rewards
• Letting points expire (check expiration rules)
• Ignoring annual fee math

Bottom Line

Credit card rewards are free money for responsible cardholders. Pay your balance in full every month, match your card to your spending, and redeem thoughtfully. Done right, it is one of the easiest ways to get more from dollars you were already going to spend.

You can call your credit card issuer and ask for a lower APR — and it works more often than people realize. Studies show that over 70% of cardholders who asked for a rate reduction received one. It takes one phone call. Here is how to do it effectively.

Why Credit Card Issuers Lower Rates

Credit card companies want to keep good customers. If you have been a reliable cardholder — making on-time payments, maintaining the account — they have an incentive to work with you rather than lose your business. The retention department especially has authority to offer rate reductions, fee waivers, and other concessions.

When You Are Most Likely to Succeed

Your leverage is strongest when:

• You have a good payment history with this card (12+ months of on-time payments)
• Your credit score has improved since you opened the account
• You carry a balance and the issuer stands to earn more by keeping you
• You have competing offers from other cards at lower rates
• You have been a long-term customer

If you have missed payments in the past 12 months, your leverage is lower — but it is still worth asking.

How to Prepare Before You Call

1. Know your current APR. Find it on your statement or in your account online.
2. Check competing offers. Look at what other cards are offering. If you have received a pre-approval for a card at 17% APR and yours is 24%, you have a specific number to reference.
3. Know your credit score. Pull your free credit report at AnnualCreditReport.com. If your score has improved significantly since you opened the account, mention it.
4. Know your payment history. Confirm you have made on-time payments. Issuers can verify this instantly.

What to Say When You Call

Call the number on the back of your card and ask for the retention or customer loyalty department. The standard script:

“Hi, I have been a customer for [X] years and I have always paid on time. I recently received offers from other cards with lower rates. I would like to stay with [issuer name], but I need a lower APR. Can you help me with that?”

Be polite, direct, and specific. Mention the competing rate if you have one. Ask for a specific number: “Can you bring my rate down to [X]%?”

What to Expect

The representative will either:

• Approve a rate reduction immediately (common for good customers)
• Offer a temporary rate reduction for 6-12 months
• Tell you they cannot reduce the rate right now

If the first rep declines, ask to speak with a supervisor or the retention department. A different rep often has more authority. If they still decline, call back another day — you may reach a rep with more flexibility.

Other Ways to Lower Your Effective Rate

If the direct negotiation does not work, consider these alternatives:

• Balance transfer card: Transfer your balance to a 0% APR card for 12-21 months. You pay a transfer fee of 3-5%, but interest savings usually far exceed that cost on any meaningful balance.
• Personal loan consolidation: If you have significant credit card debt, a personal loan at 10-14% APR is almost always cheaper than a credit card at 20-25%.
• Hardship programs: If you are in financial hardship, many issuers have formal hardship programs that temporarily reduce APR to 0-9.9% while you pay down the balance. These go on your credit history but can be a lifeline in a crisis.

Does Asking Hurt Your Credit Score?

No. Calling to request a rate reduction does not trigger a hard inquiry and does not affect your credit score. The issuer may review your account information internally, but this is a soft pull.

After You Succeed: Get It in Writing

When the rep confirms a rate reduction, ask them to send a confirmation email or look for the change reflected in your next statement. Document the date of the call, the representative’s name, and the new rate.

Bottom Line

Call, ask for retention, and state your case in one minute. Over 70% of people who ask get something. The worst outcome is a “no” — and you can try again in six months or pursue a balance transfer instead.

APR stands for annual percentage rate. It is the yearly cost of borrowing money, expressed as a percentage. When you carry a credit card balance, take out a personal loan, or finance a car, the APR determines how much extra you pay on top of what you borrowed.

APR vs. Interest Rate: What Is the Difference?

The interest rate is the base cost of borrowing. APR is broader — it includes the interest rate plus any fees charged to originate the loan. On a mortgage, for example, APR reflects the interest rate plus closing costs and origination fees. On a credit card, APR and the interest rate are usually the same number because credit cards do not typically have origination fees.

How APR Works on Credit Cards

Credit cards express APR as an annual rate, but interest accrues daily. If your card has a 22% APR, your daily periodic rate is 22% ÷ 365 = 0.0603% per day.

If you carry a $1,000 balance at 22% APR for one year, you pay approximately $220 in interest — assuming no additional purchases or payments. In practice, interest compounds, so the actual cost can be higher.

The best way to avoid credit card APR entirely: pay your full statement balance by the due date each month. When you pay in full, you owe zero interest regardless of your card’s APR.

Types of APR on Credit Cards

• Purchase APR: The rate applied to everyday purchases you carry as a balance. This is the rate most people see advertised.
• Balance transfer APR: The rate applied when you move debt from another card. Often lower than the purchase APR — some cards offer 0% for 12-21 months.
• Cash advance APR: The rate for cash withdrawals on a credit card. Usually the highest rate — 25% to 30% — and interest starts accruing immediately with no grace period.
• Penalty APR: A higher rate triggered by late payments. Can be as high as 29.99%. This is why paying on time matters.
• Introductory APR: A promotional rate (often 0%) for a set period — common with new card offers and balance transfer promotions.

What Is a Good APR for a Credit Card?

The average credit card APR in 2026 is around 20-22%. Cards for excellent credit (750+ score) often start at 15-17% variable. Cards for fair or bad credit can reach 25-30%+. Rewards cards tend to carry higher APRs in exchange for points and cash back benefits.

How APR Works on Loans

For installment loans — auto loans, personal loans, mortgages — APR includes:

• The stated interest rate
• Origination fees
• Points (mortgage-specific discount costs)
• Mortgage broker fees

Because APR rolls in these costs, a loan with a lower interest rate but high fees can have a higher APR than a loan with a slightly higher interest rate and no fees. When comparing loan offers, compare APR — not just the interest rate.

Variable vs. Fixed APR

Most credit cards have variable APRs tied to the prime rate. When the Federal Reserve raises rates, your card’s APR goes up. Fixed APR loans (like most mortgages and personal loans) lock your rate for the life of the loan. Fixed is predictable; variable can go down or up.

How to Lower Your APR

• Improve your credit score: A higher score qualifies you for lower-rate cards and loans.
• Call and ask: Credit card issuers sometimes grant rate reductions to customers with good payment history. Call customer service and ask directly.
• Transfer your balance: A 0% balance transfer card lets you pay down debt interest-free for 12-21 months. Watch for transfer fees (usually 3-5%).
• Shop around: Before taking any loan, compare offers from multiple lenders. Even a 1-2% APR difference on a $20,000 auto loan saves hundreds over the loan term.

Bottom Line

APR is the true annual cost of borrowing. On credit cards, you can avoid it entirely by paying in full each month. On loans, compare APR — not just interest rates — when shopping for the best deal. The lower your APR, the less you pay to borrow money.