Annual percentage rate, and that is short for apr, is the annual cost of credit money. If you obtain $step one,100000 getting annually from the good 20% Apr, the to pay straight back might possibly be $step one,2 hundred.

Even in the event which is a straightforward reason, Annual percentage rate is somewhat more complicated with respect to handmade cards. And you can even after how frequently the fresh terminology “APR” and “interest rate” are utilized interchangeably, they aren’t a bit exactly the same thing. To higher understand what is Apr and just how it identifies credit card appeal, the following is an entire primer about the subject. (more…)