Saving, Managing Debt, and BudgetingCredit Card Debt |
What does my credit history have to do with my credit card interest rate? |
Card issuers look at your credit history to see what kind of risk you might be to them, what chance you will default, and how much debt you can handle. Depending on this, the card issuers decide on an interest rate that will cover the costs of defaulting accounts, fraud, and profit, and this number is the rate that they then charge the consumer.