Credit cards

[DC_FC]

With Credit cards what does the percentage mean eg 16.9% or 8.4,

thanks

[factor-fiction]

Annual Percentage Rate (APR) measures how much a loan or other line of credit costs you in interest over one year, and it is expressed as a percentage of the total amount of money that you borrow.
To work out the APR, take the amount of your loan and how much interest you will be charged over one year and divide that interest amount by the amount of your loan. Multiply the number by 100 and you get your APR. For example, you borrow £1,000 and are charged £180 in interest for that year. The APR is calculated like this:

180/1000 x 100 = 0.18 x 100 = 18%

Normally you know what the APR is before you know how much the interest you will be charged is, so you can determine how much your interest over the course of a year is by using this formula:

1000 x 18% = 180

[DC_FC]

So its the amount you pay on top of what you have borrowed, so does the apr affect small purchases eg £50 here £60 there

[EcclesCake]

You pay interest on all of your purchases, unless you settle your account in full each month.

[boxtops]

Yes - you pay interest on everything you buy unless you settle in full every month before the due date.

[factor-fiction]

But if you pay the bill in full each month by the due date there will be no interest to pay on your purchases. The APR only comes into play if you start to incur interest because you don't settle your bill on time.