What is APR on a Credit Card? | Discover | Card Smarts

APR stands for annual percentage rate, and a credit card APR is the interest rate your credit card issuer uses to calculate how much interest you’ll owe. You may have different APRs for various circumstances, such as carrying a balance past the due date, taking out a cash advance, or doing a balance transfer.

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APR can seem complicated, especially when you're trying to figure out how the APR on a credit card matters for your finances. APR is the annual interest rate, expressed as a percentage, that your credit card issuer uses to calculate your interest charges.

If you pay your balance in full each month, never take a cash advance, and don’t do any balance transfers, your APRs don’t affect you because you won’t be charged interest . Otherwise, your APR matters a lot, eventually raising the cost of whatever you charged to more than you would have originally paid if you had paid for it in full. Watch this video to help you better understand APR when comparing which credit card might be the best for your needs.

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