How Does Credit Card APR Work?
Video Transcript How Does Credit Card APR Work? This is Patrick Munro talking about how does APR on credit cards work. Basically APR is a average paid rate that the credit card company charge for the purpose of you having being a customer of the credit card company. Credit card companies are normally bank related, so they borrow money at one rate and then lend it out to you based on your credit worthiness at another rate, thereby making a profit after they pay their expenses. APR is a true reflexion of how much interest you as a creditor are paying on your credit card. It’s important that you keep your credit in outstanding shape so that you pay your bills on time, and as such you do not have any late fees on your credit cards, and if you do that you’ll have the best APR available, to the best customers the APR is always the lowest. However, if you’re late on your credit cards and you do not pay your bill on time, the penalties will trigger penalties going forward, and you will have a
