Skip to content

Are you paying enough attention to your credit card’s APR?

Dec. 13, 2022
5 min read
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Editor's Note

This is a recurring post, regularly updated with new information. 

The No. 1 rule for a winning credit card rewards strategy has nothing to do with comparing sign-up bonus offers or maximizing redemption value from your points. Instead, it’s much simpler — pay your balance in full every month.

As easy as that guiding principle sounds, following it can be much more challenging. The average household credit card debt in 2021 was $5,221, according to data from Experian. Owing debt can negate the value of any points or cash back earned, particularly in today’s environment where credit card interest rates are setting record highs.

Related: How to earn points and miles with fair to poor credit

Hopefully, you're already following the most important of our credit card commandments. But even if you are, you never know when you'll accidentally miss a payment or get hit with a large purchase that takes you a bit longer to pay off. Because of this, you still need to keep an eye on your annual percentage rate (APR).

In this guide, we’ll provide some helpful tips on what to look out for when it comes to your credit card’s APR.

Keep tabs on your APR

The bank that issued your credit cards can change your interest rate at any time and you likely won’t receive a notification about it.

You've probably received plenty of emails from the bank on how to use your rewards points and why you should use your card's mobile payment system, but we're willing to bet you haven’t received any reminders to monitor your APR or notifications that it's gone up.

While frustrating, this makes sense. Banks aren’t looking for opportunities to call attention to the fact that you might have to pay them more. But as interest rates have risen over the past several months, many credit card interest rates have risen along with them. If you haven't checked your APR recently, you might be surprised to learn what it is today.

Sign up for our daily newsletter

This is why it's important to check your card's APR regularly and stay on top of these changes. Additionally, noting an increasing APR will motivate you to pay your bills on time and in full.

Ask for a lower interest rate

If you notice that your APR has increased and you’ve been a loyal, low-risk customer, it can be worth your time to give your issuer a call and try to negotiate a lower rate.

SHUTTERSTOCK

Rather than simply asking for better terms, we recommend reviewing some of the preapproved offers you receive in the mail. Consider the APR ranges for your card — if the offer starts at a lower interest rate, mention it to the customer service representative. Just as airlines and hotels are willing to match elite status to appeal to customers, banks and card issuers may be willing to budge to retain customers.

Choose a balance transfer

If you’ve been carrying debt on your card from month to month, you may not have luck asking for a lower interest rate. Plus, knocking down your interest rate a couple of percentage points won’t make much difference. Instead, you should consider looking at a card with a balance transfer offer to move your debt to a card with an attractive 0% intro interest rate.

Related: 5 tips to make a successful balance transfer

BROTHERS91/GETTY IMAGES

While you’ll likely pay a balance transfer fee of 3%-5% of the transferred amount, there are some notable exceptions. Even if you do pay a balance transfer fee, that initial chunk of cash can be worth it. Create a plan to attack and pay down your debt in the interest-free introductory period, and you can come out ahead of paying monthly finance charges.

Related: 6 simple rules to stay out of credit card debt

Open a card with an introductory 0% APR

If you know you need to make a large purchase that you won't be able to pay off immediately, you can open a new credit card with an introductory 0% APR and put the purchase on the new card. This will give you time to pay off the purchase without accruing interest.

Just note how long the 0% APR lasts and pay off the balance before you're hit with interest.

Bottom line

Success in the world of points and miles requires staying on top of the APR on each of your cards.

If you’ve gotten ahead of yourself and been carrying a balance while trying to collect rewards points, it’s time to shift your focus. Lock in a lower interest rate, pay off your debt and improve your credit score.

Related: TPG’s 10 commandments of credit cards

Additional reporting by Stella Shon and David McMullin.

Featured image by HERO IMAGES/GETTY IMAGES
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

TPG featured card

NEW BENEFIT! TAKEOFF15!
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review

Rewards

1 - 3X points
3XEarn 3X Miles on Delta purchases and purchases made directly with hotels.
2XEarn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets.
1XEarn 1X Miles on all other eligible purchases.

Intro offer

Earn 90,000 Bonus Miles50,000 Bonus Miles
Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.

Annual Fee

$250

Recommended Credit

670-850
Excellent/Good
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.

Pros

  • Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
  • Receive a Domestic Main Cabin round-trip companion certificate each year
  • Statement credit for TSA PreCheck/Global Entry fee (up to $100)
  • First checked bag free

Cons

  • Doesn't make sense if you don't fly Delta
  • SkyMiles aren't the most valuable airline currency
  • Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
  • New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
  • Earn 1X Mile on all other eligible purchases.
  • Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
  • Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Apply for Delta SkyMiles® Platinum American Express Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review

Rewards Rate

3XEarn 3X Miles on Delta purchases and purchases made directly with hotels.
2XEarn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets.
1XEarn 1X Miles on all other eligible purchases.
  • Intro Offer
    Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.

    Earn 90,000 Bonus Miles
    50,000 Bonus Miles
  • Annual Fee

    $250
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    670-850
    Excellent/Good

Why We Chose It

Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.

Pros

  • Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
  • Receive a Domestic Main Cabin round-trip companion certificate each year
  • Statement credit for TSA PreCheck/Global Entry fee (up to $100)
  • First checked bag free

Cons

  • Doesn't make sense if you don't fly Delta
  • SkyMiles aren't the most valuable airline currency
  • Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
  • New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
  • Earn 1X Mile on all other eligible purchases.
  • Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
  • Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees