What does APR mean on a credit card?
Learn how a card's yearly interest rate works.
APR means annual percentage rate. On a credit card, it shows interest as a yearly rate. A card may have one rate for purchases and another for cash or other uses.
Try simple math first. $100 at 12% for one full year is $12 in simple interest. Real card bills often use daily balances. They will not always match this simple sum.
A grace period may let you avoid interest on purchases. You must meet its terms, such as paying the full balance by the due date. Check your card's rules.
- Paste the sample into ChatGPT.
- Check the simple result is $12.
- Find each rate, due date and grace-period rule on your card terms.
- Ask the issuer about the real math or a charge you do not know.
Use a simple example: $100 at 12% simple interest for one full year. No payments or fees. Show the interest. Why is this not an exact way to work out a real card bill?
Paste the message into ChatGPT, then fill in any blanks before you send it. ChatGPT opens in a new tab. Opening it does not send the message.
Cash taken from a card can have different rules. A minimum payment does not usually avoid interest.
Sources and more help
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