When does the APR apply to a credit card balance?
The annual percentage rate on a credit card is what determines how much interest you pay if you carry a balance on the card, take out a cash advance or transfer a balance from another card to the new card.Keeping a BalanceWhen you do not pay your credit card in full, and carry a balance over to the next month, you pay interest on that money. New purchases, cash advances and balance transfers that carry over to the next month all require you to pay interest. The larger the amount you carry over month to month, the more you pay in interest over time.Late PaymentsIf you miss payments or are late in making your payments, your interest rate may increase, so your APR will be higher.Introductory APRTo get people to apply for a credit card, companies often offer a very low introductory APR. Credit card companies sometimes raise that rate after six months.Tiered APRsSome cards charge different interest rates depending on your outstanding balance. With these cards, higher balances usually have a
