Credit Card Solution

APR is an abbreviation for Annual Percentage Rate, which is basically another phrase used to describe a credit card‘s interest rate. Every purchase made with a credit card gathers interest that must be repaid eventually. For example, a purchase made with a card that has an APR of 5% would cause 5% of that purchase to accumulate in interest.

Thus, a $100 purchase with such a card would cause a debt of $105. Some credit cards offer grace periods that give the cardholder a specific period of time before any interest is charged on a purchase. Before applying for any credit card it is best to learn and understand the various aspects of the APR and how it is calculated.

Varying Calculations

Unfortunately, every credit card company uses a different method to calculate the APR> However, they are required by law to specify the APR and the methods used to calculate it as well. N

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