Understanding Your Credit Card APR: How to Find It & Lower It

Look at your online statement for the APR.

APR -- short for annual percentage rate -- is the annual interest rate assessed on your credit card balances or other loans. The higher the rate, the more you must pay in interest on unpaid credit card balances. Paying your bills on time, maintaining a good credit-to-debt ratio and avoiding high balances can all help you secure a lower APR. You can discover your current rate through several methods.

Step 1

Log on to your credit card provider's website, or create an account if you do not have one already. Look on the account homepage for your APR. It is usually presented as a percentage.

Step 2

Download a recent statement from the credit card provider's website. Some credit card companies, such as Discover, do not list the APR on the website itself. Click on the statements page, and download your most recent statement. Look there for the APR.

Step 3

Look on your monthly paper statement. The APR will be listed on the statement.

Step 4

Call your credit card company. Dial the customer service number on the back of the card and follow the voice prompts to reach the department that handles bill inquiries or general questions. Ask the service representative for your APR information.

Tip

Call your credit card company monthly requesting a lower APR. This five-minute call can save you hundreds of dollars annually if your request is granted. Do not be discouraged if you are turned down several times. Keep trying.

APR can vary for purchases versus cash advances. Look for both, depending on what information you are after.

Your APR can skyrocket with one missed payment. Monitor it closely over time for changes.