Question

Why is it important to know the interest rate on your credit card?

Answer 1

1. Because your interest rate is what they charge you for using the card. You have to pay the fee that is the rate on your balance. The higher the interest the more you are charged.
2. Jackson's credit card charges 15% interest.
His dad's credit card charges 5% interest.
Now, they both spend 1000 dollars. Let's find out the difference between their interests.
Jackson => 1000 * .15 = 150 dollars
Dad of Jackson => 1000 * .05 = 50 dollars.
Thus, their difference is about 100 dollars
3. Alyssa got a better interest rate on her loan.
4. When you have a plan for paying it back.