When you get an offer on a credit card what does APR mean?

Question

I recieved a credit card offer which says 4.9% APR until the balance is paid off. What does the APR letters mean? Please explain.
Is that a good deal?

Answer 1

Annual Percentage Rate.

Don't just look at that. If you miss a payment, even by a day, they may ratchet your APR up as far as 30%.

4.9% is not a bad rate, in any event, but don't run balances if you can avoid it. It's throwing good money after bad.

Answer 2

APR = Annual Percentage Rate

It's the amount of interest you'll pay for the money you've borrowed with your credit card.

4.9% APR is probably for balance transfers-- meaning, you'll only pay 4.9% interest on any existing credit card balances you transfer to the new card. This is OK. But you might prefer a 0% APR credit card instead. You can find a complete list here:

http://www.asapcreditcard.com/0-apr.html

Take a look and compare some different offers to the one you've received. You may find out the one you have will suit you best. Either way, it's good to compare first!

Hope this helps. GOOD LUCK!

Answer 3

Is the APR only for a balance transfer? If so, it's a good deal for the transfer, but you won't want to use the card for regular purchases while you pay off the first transfer. The APR is the percent you pay each month you have unpaid charges on the card. Since most cards charge 10% or more, this sounds like a good deal...but I would read the fine print!

Answer 4

Technically standing for Annual Percentage Rate (APR) it denotes the amount of interest the credit card companies will be charging you over your credit card debt. Every credit card issuer is obliged to tell the customer about APR. Though just a number, the APR comes in different flavors.


1. The introductory APR:

This APR is the rate at which credit card companies will charge you from the beginning. It could be a low rate on your balance transfers or 0% initially to lure you into buying the credit cards. Most credit cards with 0% introductory offer come with this rate for a predefined period like for 6 months, 12 months. Credit card companies also offer low introductory APR like 4.99% etc. on balance transfers for a limited period. After the introductory period is over the APR switches to a high rate. If you wish to dispose off the credit card within the introductory APR period, technically you can get a low rate or maybe a 0% APR if the credit card offers.

2. Delayed APR:

This generally sets up after the introductory APR period has expired. Credit card owners who wish to keep the plastic with them for more than a year or even long after the introductory APR expires should seriously consider it. After attracting a customer with low introductory APR the delayed APR rate earns money for the credit card companies.

3. Penalty APR:

As the name implies the penalty APR is slapped on those who are late in their payments. Miss a payment and the penalty APR is there to greet you. Credit card companies charge a lot lot higher interest rates to defaulters. The more you default the more you pay. In addition to the penalty APR the late fees along with a decline in credit ratings is also on the cards. So, it is better to avoid ending up in such a scenario and follow your repayment schedule like religion. More than saving money it shines on your credit report. Read more about it at: http://www.credit-card-gallery.com/article/203,5_must_know_credit_card_APR_types_to_save_more