What is credit card Apr?

Credit card APR varies based on credit history, prime rate fluctuations, and card type. To avoid credit card interest, pay the statement balance in full monthly or utilize 0% intro APR offers. APR (annual percentage rate) is the yearly cost of borrowing money. If you borrow $1,000 for a year at a 20% APR, the total to pay back would be $1,200.

What are the different types of APR on a credit card?

Credit cards can have multiple types of APR. These may include: Purchase APR: The rate for purchases made with your credit card. Balance transfer APR: The rate for balances you transfer to your credit card. Cash advance APR: The rate for credit card transactions classified as cash advances. Introductory APR: A special introductory rate, often 0%.

Why is Apr important when choosing a credit card?

Remember, while APR is important, it’s just one of the factors to take into account when choosing a credit card that’s right for you. Annual percentage rate (APR) is the annual cost of borrowing money, including fees. Learn more about how to calculate it, different types of APR and more.