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The Annual percentage rate abbreviated APR is the interest that is paid if a balance is carried over from one grace period to another. In other words the
APR on a credit card is the interest you will be charged if you do not pay your bill in full before the grace period is over. An APR is also the interest
you are charged for a cash advance or the transfer of a balance from another credit card.
A credit card can have multiple APRs
1. An APR for purchases
2. An APR for cash advances
3. An APR for balance transfers
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APRs for cash advances and balance transfers are usually greater than that for purchases.
4. Tiered APRs - APRs can be applied to different amounts of an outstanding balance. For examples a credit card company can apply an APR of 15 % for
a balance from $1 - $2000, 17 % above $2000.
5. An introductory APR - Credit card companies offer low APRs to attract consumers to use their credit cards. Typical introductory periods may last
anywhere from a couple of days to a year. After an introductory period is over, a new APR applies.
6. A penalty APR - The APR on your credit card may increase if you make a late payment. For example, a credit card company can increase your APR if
you make a payment that is 5 days. This penalty APR may remain in effect for 6 months.
7. A delayed APR - A different APR will be applied in the future. A credit card company may advertise no interest till next February. The APR that
will be in effect in February is the delayed APR.
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