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What does “APR” mean in regard to credit cards?


APR stands for the annual percentage rate of interest that you pay if your full balance isn’t paid each month. That sounds straightforward, but it’s not when you take into account that different kinds of charges – for purchases, cash advances, balance transfers – carry different interest rates, and those rates can change over time, especially any very low promotional rate that may have enticed you into opening your account. Also, the APR doesn’t include any annual fee for the card or other fees, such as for balance transfers. It’s best to estimate the cost of a card by calculating how much you’re likely to pay each year in interest – multiply your expected average monthly balance by the APR for purchases or balance transfers, depending on what you plan to use the card for, then divide by 100 – then adding the amounts of any fees.
-Conrad de Aenlle