What factor could lead to a high APR on a credit card?

A high APR (Annual Percentage Rate) on a credit card is often associated with the risk that lenders perceive when evaluating a borrower’s creditworthiness. A poor credit score or history signals to lenders that the borrower may have a history of not managing credit effectively, which increases the likelihood that they will default on future payments. As a result, lenders may charge higher interest rates to compensate for this increased risk.

In contrast, factors such as a strong credit history, making no late payments, and using the card responsibly typically indicate a lower level of risk for the lender. Individuals who demonstrate consistent, responsible credit behavior are often rewarded with lower interest rates because they are seen as more likely to meet their repayment obligations. Thus, a poor credit score or history distinctly becomes the primary factor leading to a higher APR on credit cards.