What is APR?
APR, or Annual Percentage Rate, is the interest charged on the balance you carry on your credit card. It is expressed as a percentage and represents the cost of borrowing money over a year. APR includes not only the interest rate but also any additional fees or charges associated with the credit card.
How does APR apply to cashback credit cards?
Cashback credit cards offer rewards in the form of cash rebates or statement credits for eligible purchases. While they come with the benefit of earning cashback on your spending, they also have an APR like any other credit card. The APR on a cashback credit card represents the interest you will be charged if you carry a balance from month to month.
Why is APR important when choosing a cashback credit card?
The APR is an essential factor to consider when selecting a cashback credit card. A higher APR means you'll pay more in interest charges if you carry a balance. On the other hand, a lower APR can save you money in interest payments. It's important to compare the APRs of different cashback credit cards to find the one that offers the most favorable terms for your financial situation.
Conclusion
Understanding the APR on a cashback credit card is crucial when evaluating the overall cost of using the card. By considering the APR along with other factors such as rewards, fees, and credit limits, you can make an informed decision and choose a cashback credit card that aligns with your financial goals and spending habits.