What does credit card APR stand for?

The term credit card APR stands for Annual Percentage Rate. This figure represents the cost of borrowing on a credit card on an annual basis, including both the interest rate and any associated fees. The APR is expressed as a percentage and is designed to give consumers a consistent measure of the cost of credit over the span of one year, allowing for easier comparisons between financial products.

Understanding the APR is crucial as it impacts how much you will ultimately pay when you carry a balance on your credit card. The higher the APR, the more you'll pay in interest over time, making it an important factor to consider when managing personal finances. Knowing the APR can help consumers make informed decisions regarding credit card usage and debt management.