How Does Credit Card APR Work?

Welcome to my MissBeHelpful channel!

Lots of you have been asking me to talk more about APR, or annual percentage rate. This is a term used in reference to everything from mortgages and car loans to credit cards, so it's really important that you take a few minutes to understand how it works!

In this video, I look at credit card APR - which we all have listed on our monthly statement. Here I jump into what APR is, how it’s calculated and how to think about APR when applying for new cards.

More from MissBeHelpful:
How To Earn Rewards Without Hurting Your Credit Score:

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’Til next time… PEACE!

[vminhope]

WHY DO WE NOT LEARN THIS IN HIGH SCHOOL??? I'M 23 and just starting to learn about money and cards.

[demetriarule]

This was like, APR for Dummies: straight to the point and extremely simplified. Thank you!

[Mezgo]

You DON'T HAVE to pay your balance in FULL in order to avoid paying interest. Pay the STATEMENT BALANCE and you won't get charged any interest. It's never a bad thing to pay in full, however you don't necessarily have to, to avoid interest charges.

[michaelm]

This was straight up the easiest most understandable video on this that I have ever watched; Thanks!!

[genesisaguilar]

Thanks to you I'm saving for retirement and building credit at 20 years old, I love your channel!!

[Gohan]

Freeloaders all the way!! Although that doesn't seem like the best name for people who pay on time every time. There has to be a better name for responsible people right ?! This channel rocks!🤘🏻

[keatonfischer]

Simple explanation, no waisted time, none of the usual complex annoying filler material that you tubers usual put in. You are of a divine origin missbehelpfull!

[badgalexxx]

Omg you're AMAZING! I just received my first credit card im currently trying to build my credit Im a junior in college, I've never had a credit card. I've always heard the horror stories of my friends with their credit cards so I was so scared to get one at first 😭. I was really confused on how this whole thing worked but you have helped me so much! Thank you!!! 😊

[mirceastaicu]

Good explanation, but it could use an example to drive the theory home

[Kyuubert]

I wanted to say I followed your advice 4 years ago right before the pandemic. My credit went from low 500s to 760+! Thank you!

[joselinsanchez]

I have been asking my friends and looking online about what APR really means and you out of everyone explained it right to the point. Gave it a like. Thank you so much.

[IsshmanGarcia]

For those wondering, I believe when she says pay your balance in full, she's referring to your STATEMENT BALANCE. Obviously, paying the whole total balance would benefit you, but as long as you pay your STATEMENT BALANCE in full each billing cycle, you won't carry over any debt from that month's balance, thus you won't accrue any interest- that applies to ALL CREDIT CARDS. Learn how to work your credit, don't let it work you!

[jazlynbell]

Love your channel! I'm in high school and nobody teaches me this stuff, haha :)

[QuoixYanni]

4 years later and still the best video!!! I'm 24 and just now understanding this in addition to getting my first credit card 🖤🖤 thankyou so much for the video !!

[lor]

While I understood the concept of paying interest on borrowed money, I never understood how that interest was calculated. Thank you. Schools should teach personal finance.

[Miguel-ngwm]

She reminds me of Amy Santiago. Even the voice. She is very beautiful

[gregdrake]

Thank you so much for this video! I was having a hard time understanding APR and now I understand it perfectly! On the bright side I won’t have to worry about it because I will be paying everything off each month. Thanks again :)

[Torchman-]

Oh my god, this is the real-life version of Amy Santiago (Brooklyn Nine-Nine), if you know you know.

[qtippyyy]

Thank you! I just turned 18 and finally someone was able to answer this question clearly enough for me to understand! Thank

[g_dub]

Hello and Thank you for the good advice. Keep em comin!! And to all my peoples just a friendly reminder that if you like a video help the YouTuber out by watching the ADs because they only get paid if we watch the Ads. Think of it as your way of paying it forward. I try to watch as many as possible for the channels I appreciate. Thanks yall and have a great night.