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

Editor’s note: This is a recurring post, regularly updated with new information and offers.

The No. 1 rule for a winning credit card rewards strategy has nothing to do with comparing welcome 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. According to Experian data, the average household credit card debt in 2024 was about $6,700. Owing debt can negate the value of any points or cash back earned, particularly in today’s environment of high credit card interest rates.

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.

A man reading a bill in his kitchen — STURTI/GETTY IMAGES

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. However, as interest rates have risen, 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.

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.

Woman using a credit card at her desk — FRESHSPLASH/GETTY IMAGES

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% introductory interest rate.

Person next to a laptop holding a credit card — 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.

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 have been carrying a balance while trying to collect points and miles, it’s time to shift your focus. Lock in a lower interest rate, pay off your debt and improve your credit score.