Understanding credit card interest rates and fees is vital for effective financial management. At Contoso, credit card interest rates are expressed as an Annual Percentage Rate (APR), which represents the cost of borrowing over a year. Depending on the card type, your APR may vary and can be fixed or variable. A fixed APR remains the same throughout the year, while a variable APR can change based on market conditions. Besides interest rates, be aware of additional fees that may apply, such as annual fees, late payment fees, foreign transaction fees, and cash advance fees. To avoid incurring high interest, consider paying your balance in full each month. If that’s not feasible, aim to pay more than the minimum payment to reduce your outstanding balance faster. Understanding these terms not only helps in making informed decisions when choosing a card but also promotes responsible credit usage, ensuring you maintain a healthy credit score. For further inquiries, feel free to contact Contoso customer service for assistance.