APR (Annual Percentage Rate)

The yearly interest rate charged on a credit card balance, expressed as a percentage.

APR is the cost of borrowing on your credit card if you don't pay the statement balance in full each month. Variable APRs change with the prime rate; intro APRs apply only during a promotional period. The penalty APR (often 29.99%) applies if you miss a payment. APR doesn't include fees — read the Schumer Box for the full cost picture.

Reviewed by the ClearValue Editorial Team.