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.