APR
Definition
APR - Stands for annual percentage rate. There are two types of APR that most credit card companies charge: Fixed and Variable. A fixed APR stays the same throughout the life of the card. Variable APR cards consist of the prime rate + percentage points. For example if the card rate is prime + 4 >> 99% and the prime rate is currently 5%, the current interest rate for the card is 9 >> 99% . The fed sets the prime rate and adjusts it periodically. So a card with a low variable rate now may not be low in the future. Some companies use a single rate for all transactions, others have varied rates for purchases, balance transfers and cash advances. Also the most companies will assign a penalty APR if you were to miss payments. This penalty APR is generally much higher.
Related Terms Other terms related to 'APR' starting with the letter 'A' Assets, Annual fee, Arbitration, Average daily balance, Air miles Browse by Letter » A B C D E F G H J L M N O P R S
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