What is APR?

Annual Percentage Rate (APR) is a term used to describe the yearly rate of interest a borrower pays for using a credit card in Delaware. APR is a measure of the total cost of borrowing money, expressed as a percentage of the amount borrowed. APR is how much a borrower pays to borrow money on a credit card, balance transfer, or personal loan over the course of a year. APR is the total cost of borrowing money across all fees, including annual fees, interest charges, balance transfer fees, and cash advance fees. APR is different from the interest rate, which is the amount a borrower pays for borrowing money over a specified period of time, such as a month. APR accounts for interest and fees associated with the loan in addition to the principal amount of the loan. For example, a credit card with a listed APR on the terms and conditions may also charge additional fees for balance transfers, cash advances, and late payments. These fees are not included in the interest rate which means that the APR would be higher than the interest rate. APR is important for borrowers to understand because it is the rate that credit card companies use to calculate the amount of interest they will charge for borrowing money on a credit card. Knowing the APR helps borrowers determine the total cost of borrowing money when using a credit card in Delaware. It also helps borrowers compare APR rates across different credit cards and make a more informed decision about what is right for their financial situation.

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