What do I need to know about annual percentage rates for credit cards?

Annual Percentage Rate (APR) is the amount of interest charged by a lender on an annual basis for a credit card. In Minnesota, the maximum allowable APR varies by credit score and is set by the Minnesota Department of Commerce. Generally, the APR for a consumer with a good or excellent credit score is set at 18 percent or lower, while those with a fair or poor credit score may be offered an APR of 22 percent or higher. When shopping around for a credit card, it is important to closely examine the APR offered by the lender, as it can have a major impact on the total cost of borrowing. A higher APR results in more interest payments over time. Additionally, lenders may offer an introductory APR for a specific period of time, and it is important to be aware of when the APR will increase to the regular rate. Finally, it is important for consumers to understand that APRs for credit cards can vary from state to state. Therefore, it is essential to research the rates offered in Minnesota to make sure you are getting the best deal possible. When it comes to credit cards, the APR is an important factor to consider and may give you the opportunity to save money.

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What do I need to know about annual percentage rates for credit cards?

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