APR or Annual Percentage Rate is the true interest rate you’re paying, on an annual basis, on your credit card contract or financial agreement. This include hidden costs and fees. Knowing the APR should allow you to compare rates among lenders.
The APR includes:
- All fees
Once you know the yearly amount of your interest and fees combined, you can do a comprehensive comparison. If you have good credit, you’ll most likely get a credit card with the lowest APR. If you’re applying for a credit card and you’ve never had one before, expect to pay a higher APR. Still, with all the numbers in one tidy APR figure, you’ll have an easier time finding the best rate.