What is a Credit Card APR and Why Does it Matter? | Discover | Credit Resource Center

How Annual Percentage Rate (APR) affects your money and how to understand your credit card APR. Created by Discover.

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Annual Percentage Rate, or APR, can seem complicated, especially when you’re trying to figure out how the APR on a credit card will affect your money. Broadly speaking, APR is the annual interest on your account if you carry a balance, expressed as a percentage. If you pay your balance in full each month, your APR is inconsequential. But if you do carry a balance, your APR matters a lot, eventually raising the cost of whatever you charged to more than you would have originally paid, if you paid in full. Check out this video guide to understanding APR and why to pay attention to APR in credit card offers.