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Interest rate

Cards & borrowing
The percentage charged on borrowed money, usually expressed annually.

Overview

Interest rates affect how much you pay back on credit cards, loans, and overdrafts.

Rates can be fixed or variable depending on the product.

Why it matters

  • Higher rates mean higher costs.
  • Rates can vary by credit profile.
  • Understanding the rate helps you compare products.

FAQs

Is a lower interest rate always better?

Usually, but you should also consider fees and terms.

Can my rate change over time?

Yes, if you have a variable rate product.

Related terms

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