What is APR?

APR stands for Annual Percentage Rate and is the cost of borrowing money over one year. In regards to credit cards, APR is the interest rate that cardholders are charged on their outstanding balance. The APR is expressed as a percentage, and is determined by the credit card issuer when an account is opened and can vary depending on creditworthiness. In the State of Washington, the maximum APR is 18%, but often credit card issuers will offer a lower rate to encourage consumer spending. Generally, the APR rates are divided into either fixed rates or variable rates. Fixed rates are the same throughout the duration of the credit card agreement, while variable rates may change depending on various market conditions. Additionally, many credit card providers offer introductory APR periods, which may offer cardholders lower rates for a certain period of time. It is important for consumers to fully understand the terms and interest rate associated with a credit card before signing any agreements.

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