The actual cost of credit to the borrower, including interest and certain other charges, expressed as a yearly rate. Determining the APR’s for two products permits consumers to comparison-shop for credit.
- Browse Related Terms: Annual Percentage Rate (APR), Closing Costs or Settlement Fees, Consummation, Credit Card, discount points, Finance Charge, interest, Loan origination fees, Origination fee, Points and Origination Fees, Principal
- For credit cards, the APR is the cost of credit expressed as a yearly interest rate. Each billing period (usually about a month), the company charges a fraction of the annual rate, called the periodic rate.
APR or “annual percentage rate” is an annualized interest rate. Different APRs may apply to different balances on your account, such as your purchase balance or your cash advance balance. We use the APR that applies to each balance to calculate the interest that you owe us on the account.
- Browse Related Terms: Annual Percentage Rate (APR), Balance Transfer, Balance-transfer fee, Cash-advance fee, Interest rate, Membership fee, Participation fee
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