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APR (Annual Percentage Rate) is the yearly interest rate charged on your credit card balance. It's divided by 12 to calculate monthly interest. For example, a 24% APR means you pay about 2% interest per month on your outstanding balance. The higher the APR, the more you'll pay in interest over time.

Paying only the minimum (typically 1-3% of balance or a fixed amount like $25) will keep your account in good standing, but you'll pay significantly more in interest and take much longer to pay off your debt. A $5,000 balance at 20% APR with minimum payments could take over 20 years to pay off and cost thousands in interest.

Generally, it's better to pay off high-interest credit card debt before building savings beyond an emergency fund. Credit card APRs (15-30%) typically far exceed savings account interest rates (0.5-5%). However, keep a small emergency fund to avoid going further into debt for unexpected expenses.

A balance transfer moves debt from one credit card to another, usually to take advantage of a lower or 0% introductory APR. This can save money on interest, but watch out for balance transfer fees (typically 3-5%) and make sure to pay off the balance before the promotional period ends, as rates jump significantly after.

Minimum payments are typically calculated as either: (1) a flat percentage of your balance (2-4%), (2) interest charges plus 1% of principal, or (3) a fixed minimum amount (like $25-35), whichever is greater. Each issuer has their own formula, which should be disclosed in your card agreement.

No, this is a common myth. Carrying a balance doesn't improve your credit score and costs you money in interest. What matters is using your card regularly, paying at least the minimum on time, and keeping your credit utilization (balance/limit ratio) low, ideally under 30%. Paying in full each month is the best practice.