2006-10-21 15:39:23 · 11 answers · asked by dat n 2 in Business & Finance ➔ Credit
When you get a credit card, you'll see numbers for APR, monthly interest rate, and finance charge. APR is a yearly fee (percentage) that depends on how much you charge on the card. If you don't use your card at all or carry a balance you will not be charged. It's best to get the lowest APR possible.
The monthy interest rate is also a percentage, but it is only charged each month if you don't pay your balance in full (called "carrying a balance"). Try to pay the full amount on your card every month. If you haven't used your card in a while but still carry a balance, you will have to pay. Look for a card with the lowest number for the monthly interest rate.
Finance charge is a set amount, and is how much you are charged each time you use the card. Numbers are typically 50¢-$2. Again, get the lowest possible. If you don't make purchases with your card you will not be charged this (even if you do carry a balance).
A few cards also have yearly fees, but they're becoming less common. There's really no reason to get one with a yearly fee, and that would be charged whether or not you use it or carry a balance.
2006-10-21 15:56:52 · answer #1 · answered by zandyandi 4 · 0⤊ 0⤋
The APR on credit cards currently varies from about 8% to over 30%, depending upon your credit. Some cards have annual fees and others do not. You should shop around for the best deal.
You can review credit card rates and fees at http://www.bankrate.com
2006-10-21 17:10:20 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
APR = Annual Percentage Rate. This rate changes depends on Federal Prime Rate + certain points. You can get this information from credit companies. Suggest you to pay it off every month by the due date, then you don't have to pay APR. If you are unable to pay it off, worse comes to worse, make sure pay at least minimum due on the statement which will prevent creditors report to credit bureaus.
2006-10-21 15:52:36 · answer #3 · answered by Mochi 3 · 0⤊ 0⤋
APR is Annual Percentage Rate. That's how much you're borrowing the money for. Which is based on the prime rate, or what banks are charging for money at the time( usually prime+some number). Unless your card has an annual fee you don't have to pay.
2006-10-21 15:44:35 · answer #4 · answered by Chewy B 2 · 0⤊ 0⤋
Annual Percentage Rate
The amount the credit costs you.
No if you don't have a balance you should not have a fee unless you have a card that charges you a fee like Capital One for instance theirs used to be 49.95 per year in some cases and other companies have their own rate. Steer clear of high rated cards in both instances.
2006-10-21 15:45:58 · answer #5 · answered by CANDY 2 · 0⤊ 0⤋
Annual percentage rate used to calculate the interest on your outstanding balance. If you pay off your balance each cycle, then there will be no APR charged. However, if you do carry a balance, then you will be charged the interest rate even if you don't use your card.
2006-10-21 15:46:08 · answer #6 · answered by islander 2 · 0⤊ 0⤋
Annual Percentage Rate, its how much precentage you will pay, per year, on any balance you hold. Its not necessarily the same rate you will pay montly on any percent you care month to month, but if you carried the exact same amount for the full year the interest you would pay would match the APR.
2006-10-21 15:42:11 · answer #7 · answered by Jez 2 · 0⤊ 0⤋
looks like APR has been covered. most cards do not have an annual fee, but there are some that do. if your card has no annual fee, then you don't have to pay anything if you don't use it.
2006-10-21 15:48:41 · answer #8 · answered by Anonymous · 0⤊ 0⤋
annual percentage rate.
read your credit card agreement, some cards have a yearly or monthly fee whether you use the card or not
2006-10-21 15:47:10 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I HAVE VISA AND I DO NOT PAY AN ANUAL FEE. THE APR IS ABOUT 23% BEST THING TO DO IS PAY IT OFF EVERYMONTH AND THEN YOU HAVE NO APR TO PAY EITHER.
2006-10-21 15:42:24 · answer #10 · answered by roy40372 6 · 0⤊ 0⤋