Go low and repay fast!

Credit card companies will send you a monthly bill, or statement, showing how much you’ve borrowed. This example shows how to save on interest.


It definitely pays to get a credit card with a low interest rate and to pay off your bill as quickly as you can. Why? If you pay off purchases by paying your first credit card statement in full, you’ll pay no interest, plus you’ll have your full credit limit available to use again.
If you decide to repay over time, you’ll be charged interest on the unpaid balance each month (the amount you still owe). With interest, the total amount you end up spending on things may be quite a bit higher! Shop for a card with a low APR and try to pay your statement balance in full every month.
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Annual Percentage Rate (APR) expresses the total cost of credit as a yearly rate, taking into account a loan’s interest rate, term, and fees. The lower the APR, the lower the total cost of borrowing.
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