Annual Percentage Rate (APR) is the interest-rate for a whole year, rather than just a monthly fee as applied on a loan, mortgage or credit card.
It’s a financing charge as an annual-rate. APR expressed as a percentage that represents the actual yearly cost of funds over the term of a loan (borrower) or income earned for an investor.
Or, APR refers to the annual rate of interest charged to borrowers or/and paid to investors.
The interest rate is the cost of borrowing the principal loan amount, and it is expressed as a percentage.
A credit card-interest on most, you can avoid paying interest on purchases.
If you pay your balance in full each month by the due date, the APR on a credit card is an annualized percentage rates that’s applied monthly.
Knowing your credit-card annual percentage rate of term charges are crucial for your overall financial health. You are only charge when you carry credit balances from month to month.