Overborrowing can sneak up on you. One minute you're managing your debt just fine, and then it seems like you start struggling overnight. Sometimes, you don't realize you're overstretched until you're already deep in debt. Generally, the higher someone’s credit score , the better their chances of scoring an interest rate on the lower end of the range. Conversely, the lower the credit, the higher the anticipated APR. In the big picture, credit card APRs are high compared to those involved with other types of loans, so cardholders should exercise caution even when a credit card APR seems relatively low. Understanding APR helps reveal how inefficient credit cards often are as a way to borrow money for more than a short period of time (one billing cycle, at most). “APR meaning finance” trends have reshaped capital allocation for retail banking stocks. As of May 2024 projections, higher APRs are likely to sustain above-average net interest margins into H2, potentially lifting dividend payout ratios across the sector by 50-75 basis points.