Credit Cards


What does my credit history have to do with the credit card interest rate?

Card issuers look at our credit history to see what kind of a risk we might be to them, what the chances are that we will default, and how much debt we could 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 which they then charge the consumer.


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