i have a question about apr. is it automaticly charged when you make a purchase? say i buy something for 100 dollars and my apr is 12 percent. so i would really be paying 112 dollars for the item? or is it if pay off the 100 dollars within a month they dont charge apr? is there any other "main" fees i should know about before applying?
2006-11-12 12:06:37 · 7 answers · asked by joetrangmoneymaker 1 in Business & Finance ➔ Credit
it means that the amount will be added to the base price. You will pay "112" no matter when you pay it off. The exception to the is a "same as cash" option that say a furniture store may offer.
2006-11-12 12:10:36 · answer #1 · answered by Bistro 7 · 0⤊ 1⤋
Some of these answers are close. If you bought something today and paid $100 and paid it off in a year with 12% APR then you would pay back $112 in a year. However if you paid it off in a month (1/12th of a year) you'd only pay back $101. Remember APR is an annual figure, you need to divide by the time you're actually borrowing the money.
2006-11-12 20:22:39 · answer #2 · answered by nyran20 2 · 1⤊ 0⤋
APR = annual percentage rate. It applies to purchases when you buy items on credit (i.e., finance an item or put it on a store issued credit card). It represents the amount of interest you will pay on the borrowed amount (i.e., the purchase price) over the first year. For example, if the APR is 12%, on a purchase price of $200, you should expect $24 of interest to increase the amount you need to pay.
I strongly recommend that you don't buy anything if you cannot pay for it in cash (ignoring a house, but including cars).
Only borrow to purchase appreciating assets.
Good luck,
2006-11-12 20:16:57 · answer #3 · answered by TheSlayor 5 · 1⤊ 0⤋
APR is annual percentage rate, calculated annually but added monthly.
Some credit cards automatically add interest daily but usually when you make a purchase you have until the statement closing date to pay without interest penalty.
There can be other main fees such as annual membership~see american express card.
I highly suggest getting a credit card with a promotional interest rate, ie, zero percent for twelve months.
Good luck!!
2006-11-12 20:17:23 · answer #4 · answered by elibw 3 · 1⤊ 0⤋
APR = Annual Percentage Rate
It usually applies to bank deposits, not purchases. It is not a sales tax.
2006-11-12 20:09:24 · answer #5 · answered by Bill P 5 · 0⤊ 2⤋
Annual Percent Rate, more commonly called the interest rate.
2006-11-12 21:19:41 · answer #6 · answered by Mariposa 7 · 0⤊ 0⤋
only if you pay it monthly then you will be charge that 12%, if you pay it on time you won't be charged anthing.
-------------------------------------------------------------------
http://www.bestcreditrates.net
2006-11-12 20:47:04 · answer #7 · answered by bijan816 2 · 0⤊ 0⤋