What is credit card APR?

2 min read

The annual percentage rate (APR) determines the amount of interest applied to your balance during a billing cycle. APR is applied to all credit cards.

A credit card's interest rates are calculated yearly and APR signifies the interest a cardholder pays towards a transaction while using their credit card.

Types of credit card APR

  • Purchase APR
  • Cash Advance APR
  • Penalty APR
  • Introductory APR
  • Balance Transfer APR

Tips to reduce APR

You can avoid higher APRs on your credit card by maintaining a healthy credit score and making your credit card payments on time. You can also negotiate your APR with your bank if you have a good credit score.

How is credit card APR calculated?

Your APR is determined by your credit report and a good credit score will likely result in the issuer offering credit cards at low APR. However, a poor score will attract a higher APR.

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