What is APR?

When it comes to managing your credit health, understanding how credit cards work is important. Credit cards are a popular credit product for consumers. According to TransUnion’s latest Consumer Pulse Study, of those who plan to apply for new credit or refinance in the next year, over half are planning to apply for a credit card.

One aspect of credit cards that you may have heard of is APR. You may know your interest rate and know that if you carry a balance, you could be charged interest. But do you know what APR really is and how it impacts your balance? Below we break down the basics of APR.

What is APR?

APR stands for Annual Percentage Rate. APR is reflected as an annual rate you’ll pay on an outstanding balance you carry on your credit card. Unless you have a special or promotional interest rate, you’ll likely be charged interest each month until you pay off your balance in full.


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