What does Apr mean on a credit card?

The rate you pay is the card's APR – a figure expressed as a percentage. A card's APR is the annual cost of borrowing money using the card. For instance, say you make a $1,000 purchase using your credit card but can't pay the balance in full. If your credit card has an APR of 22%, you will pay $220 in interest over the year to borrow that $1,000.

What is an APR & how does it work?

Here’s what you need to know. How does an APR work? APR stands for Annual Percentage Rate and it represents the yearly cost of borrowing money. It includes the interest rate that applies to your account (credit card, mortgage, line of credit, etc.) plus other fees related to that account.

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.