What is APR?

The Annual Percentage Rate (APR) is the interest amount a customer will pay annually. It is possible to figure your interest charges per day by taking your APR and dividing this number by 365. However, most credit card companies compound interest rates. This means that your credit card fees will be higher than just this straight interest charge, especially if you carry a balance on your cards. If you have a balance you will also be charged interest on any interest charges that are not paid from the preceding month.