28th November 2019

consumerfinance
14

What does a 25% APR mean?

A credit card's interest rate is the price you pay for borrowing money. For credit cards, the interest rates are typically stated as a yearly rate. This is called the annual percentage rate (APR). On most cards, you can avoid paying interest on purchases if you pay your balance in full each month by the due date.

Is APR charged monthly or daily?

Credit card interest rates are set yearly, but calculated monthly. Some credit card interest may be calculated daily and charged monthly. To calculate your monthly interest charge, the bank takes the 18% APR and divides it by 12 months for the year. That comes to 1.5% of the average daily balance for the month.
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