Can someone explain credit card APR to me?
Its hard to explain in simple terms and I am not a financial advisor, but the idea was that it made it easier for customers to choose between lenders as the APR was the interest charged including any one off fees or other charges which may differ from company to company…the accual interest you pay may be different…but if one says a higher APR compared to another you may wish to go with the lower one. If the interest rate is 20% per annum then for every £100 you borrow you will owe an extra £20…credit cards are a very very expensive way to borrow money unless you can pay it all back the following month…If you only pay back the minimum amount it can take you 25 years or more to pay off the full amount….so beware…hope this helps a little.
