The annualized interest rate charged on unpaid credit card balances.
It only applies if you carry a balance past the grace period — pay in full monthly and APR never touches you. Cards often carry separate APRs for purchases, balance transfers, and cash advances.
Example: A 24.99% APR on a $6,800 balance costs roughly $170/month in interest alone if only minimums are paid.
FAQ
What is Credit Card APR in simple terms?
It only applies if you carry a balance past the grace period — pay in full monthly and APR never touches you. Cards often carry separate APRs for purchases, balance transfers, and cash advances.