Get 99% (apr) For Purchases This Apr Will Vary With The Market Based On The Prime Rate

If you are near-prime (basically meaning you have a good credit score, but it's not excellent) then expect to pay from 12% to 19%. Specialist lenders for those with lower credit scores kick in around the 20% APR mark rising to 50% and even higher if you have a poor credit history.

A credit card APR below 10% is definitely good, but you may have to go to a local bank or credit union to find it. The Federal Reserve tracks credit card interest rates, and an APR below the average would also be considered good.

When prime rate changes (as a result of the Fed changing the federal funds rate), your credit card APR also fluctuates. The change follows the same pattern as the prime rate — meaning a decrease in the prime rate results in a decrease in your card's APR.

A credit card's APR is an annualized percentage rate that is applied each month to unpaid balances. The monthly interest amount that appears on the bill is one-twelfth of the annual APR. The purchase APR is the interest charged on purchases you have made with the card. Most credit cards have several APRs attached.

If the prime rate rises, the interest rates on your loans and adjustable-rate credit cards will rise as well. Second, the prime rate affects liquidity in the financial markets. When the rate is low, liquidity increases.

What is Annual Percentage Rate or APR? APR stands for annual percentage rate. It is the amount of interest you pay annually on any money you borrow. The APR advertised is the rate available to at least 51% of those accepted for that product.

APR is an annualized rate. In other words, it describes how much interest you'll pay if you borrow for one full year. Let's say you borrow $100 at 10% APR. Over the course of one year, you'll pay $10 in interest (because $10 is 10% of $100).