APR
The annual percentage rate describes the cost of borrowing. A card may use different APRs for purchases, transfers, and cash advances.
Credit Card Basics
Short, plain-English explanations for the terms that appear in card offers, statements, and Cardwell comparisons.
Introductory APR
A lower promotional rate lasts for a limited period. Check what transactions qualify, when the period ends, and the ongoing APR.
Statement balance
The amount shown when a billing cycle closes. Paying the statement balance by the due date can help avoid purchase interest when a grace period applies.
Current balance
A more recent account total that can include purchases or payments made after the statement closed.
Minimum payment
The smallest amount due for the month. Paying only the minimum generally means a longer payoff time and more interest.
Credit utilization
The share of available revolving credit currently being used. Lower balances relative to limits generally mean lower utilization.
Annual fee
A yearly charge for keeping a card. Compare it with the rewards and benefits you will realistically use.
Foreign transaction fee
A fee that may apply to purchases outside the U.S. or with a foreign merchant, even when the purchase is shown in U.S. dollars.
Cash back, points, and miles
Cash back has a clear dollar frame. Points and miles can change in value depending on how they are redeemed.
Balance transfer
Moving eligible debt from one card to another. A fee often applies, and a promotional rate normally lasts for a limited time.
Merchant coding
Card networks and issuers classify purchases by merchant type. A purchase may not earn the bonus rate you expected if it is coded differently.
Questions worth asking before you apply
Will a rewards card always save money?
No. Interest and fees can outweigh rewards. Compare the complete cost and pay schedule, not just the headline rewards rate.
Does 0% APR mean there are no costs?
Not always. A balance-transfer fee may apply, and an ongoing APR can begin after the promotional period. Read the offer terms carefully.
Are all points worth the same amount?
No. Value can depend on the issuer, redemption method, travel partner, and current program terms.
Does Cardwell know whether I will be approved?
No. Cardwell compares card features and your stated preferences. It does not make approval decisions or promise approval.