What is APR?

APR stands for Annual Percentage Rate. It gives you an idea of how much your credit card borrowing will cost you over a year, as a percentage of the amount owed.

• The higher the APR is, the more expensive it will be for you to borrow.
• The lower the APR is, the cheaper it will be for you to borrow.

APR is more than just the interest rate you pay on the card as it also includes the standard fees and charges that apply to your agreement, so you get a fuller picture of how much the borrowing is going to cost you.

*APR only includes standard fees, not extra charges such as fees for cash withdrawals, late payments or going over your credit limit, which some lenders may charge you.

APR is usually based on your standard purchase interest rate. The rates for balance transfers, cash withdrawals and money transfers could be higher.