what is apr on a credit card

APR stands for Annual Percentage Rate, and it refers to the yearly interest rate youll pay if you carry a balance on your credit card. It includes the interest rate that applies to your account plus other fees related to that account. For credit cards, the APR is generally just the interest rate that applies to your account. Credit cards may have either fixed or variable APRs and will usually have different APRs that apply to different types of transactions, such as purchases, balance transfers, and cash advances. A good credit score may help you get a lower APR on a new credit card. If you pay your balance in full each month by the due date, you can avoid paying interest on purchases.