The annual percentage rate (APR) determines the interest rate -- the amount of interest applied to your balance during a billing cycle. APR is associated with all credit cards.
A credit card's interest rates are calculated on a yearly basis, and APR signifies the interest card holder pays towards a transaction while using their credit card.
Credit cards providing 0 percent APR do not require the card holder to pay interest on transactions and purchases for a certain period, which is usually between 12 - 21 months.
You can avoid higher APRs on your credit card by maintaining a healthy credit score, and by making your credit card payments on time. You can also negotiate your APR with your bank if you have a good credit score.
Your APR is determined by your credit report, and a good credit score will likely result in the issuer offering credit cards with low APR. However, a poor score will attract a higher APR.
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