ChargeItDefine APR
Definition
APR: stands for "Annual Percentage Rate" and provides a rate at which you will be charged in the form of interest.
With nearly every credit card, you will be charged interest for money owed. APR stands for Annual Percentage Rate, and is the percentage of interest a credit card will charge you. Remember APR is an annual rate. In theory, if your APR was 20% and you left $100 on the card for a year, you would have to pay $120.00. Your won’t be charged 20% a month though. The APR is roughly divided by 12, for the months in a year, which comes to 1.67%. This would tack on an extra 1.67% charge for your next bill.
Sounds simple right? APR is easy to understand but credit agencies thrown in a wrench. APR can be calculated in different ways, affecting how much one pays on the next statement. APR can be calculated several different ways, we will look at 4 main methods though.