Say Credit Cards

Fact is all credit cards have APRs, but do all the card holders understand what this APR is and how it works with your account? Perhaps, there are more credit card holders out there who don’t really know what it does. To start off, an APR stands for Annual Percentage Rate. This APR is applied to your account whenever you have an outstanding unpaid balance after a due date or a billing cycle, when your account is overdue, when you make some cash advances or when you use your credit card to transfer funds to another account.

The APR is usually about 15% per annum and not only that there are different types of APR. Keep in mind that the APR for purchases is different from cash advances as well as with fund transfers. Transactions which have the lowest APR is the one for purchases. APR is higher with cash advances but even more so with fund transfers.

As stated earlier there are many types of APR, a type that you should be familiar with is the Progressive APRs. For this APR, there is a balance level that needs to be considered. Let’s say you have a balance that is less than $500 then there would be a certain APR for that the same thing happens with a balance that is higher than $500 but this time the APR is higher. Another kind of APR that card holders usually incur is the Penalty APR, this is applied to your account whenever you fail to make a payment on the due date and went beyond the grace period.