Credit Card Terms - Annual Percentage Rate APR

Annual Percentage Rate or APR on a credit card is the yearly interest rate. Credit cards can have APRs from introductory zero percent on up. The APR can also depend on your credit score - the better your score, lower the APR.

If you are obtaining a loan, lenders are required to disclose the APR by law. When obtaining a loan your credit score can also affect the APR, with lower credit scores it is typical to see higher APRs.

If your credit card has a variable interest rate that means that the APR could change. Also some credit card feature such as cash advances or balance transfer can have an APR that differs from the APR for regular purchases.

When you are thinking about getting a new credit card, check what the APR is for different categories and after an initial introductory APR if the card/s offer one.