BANKING AFFAIRS

Detailed explanation-1: -An APR is the interest rate you are charged for borrowing money. In the case of credit cards, you don’t get charged interest if you pay off your balance on time and in full each billing cycle. Card issuers express this rate annually, but to find your monthly interest rate, simply divide by 12.

Detailed explanation-2: -A loan’s Annual Percentage Rate, or APR, is the cost of your mortgage credit as a yearly rate. Your Annual Percentage Rate is typically higher than your interest rate because it includes your interest rate plus certain fees, such as lender and mortgage broker fees, based on the specific characteristics of your loan.

Detailed explanation-3: -For credit cards, where interest is always expressed annually, the terms APR and interest rate are used interchangeably.

Detailed explanation-4: -A purchase annual percentage rate (or APR) is the interest rate that’s applied to credit card purchases. This interest rate typically kicks in when you carry over some of what you owe on purchases from month to month.