{"id":224267,"date":"2025-05-20T12:17:05","date_gmt":"2025-05-20T16:17:05","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?post_type=glossary-terms&#038;p=224267"},"modified":"2025-05-20T12:17:08","modified_gmt":"2025-05-20T16:17:08","slug":"credit-apr","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/credit-apr\/","title":{"rendered":"Credit APR"},"content":{"rendered":"\n<p><strong>Credit APR (Annual Percentage Rate)<\/strong> is the <strong>yearly interest rate<\/strong> charged on borrowed money through a <strong>credit card<\/strong>, expressed as a percentage. It represents the <strong>cost of borrowing<\/strong> if you carry a balance on your card from month to month. The APR includes not just the nominal interest rate but may also incorporate certain fees, depending on the issuer, giving a more complete picture of the cost of credit. For example, if your credit card has a 20% APR and you don\u2019t pay your balance in full, you\u2019ll be charged approximately 20% interest on the unpaid amount over a year, divided monthly.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>There are typically several types of APR associated with a credit card: <strong>purchase APR<\/strong> (for regular transactions), <strong>cash advance APR<\/strong> (often higher and starts accruing immediately), <strong>balance transfer APR<\/strong>, and <strong>penalty APR<\/strong> (applied when you miss payments). Importantly, if you pay your entire statement balance by the due date each month, you can usually <strong>avoid paying any interest<\/strong>\u2014making the APR irrelevant in that case. However, for those who carry balances, the credit APR plays a significant role in determining the <strong>true cost of using credit<\/strong> and can affect long-term financial health.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit APR (Annual Percentage Rate) is the yearly interest rate charged on borrowed money through a credit card, expressed as a percentage.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[13256,13278,13251],"class_list":{"0":"post-224267","1":"glossary-terms","2":"type-glossary-terms","3":"status-publish","5":"traders-glossary-trading-terms-c","6":"traders-glossary-ibkr-traders-glossary","7":"traders-glossary-trading-alphabet"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.7) - 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