APR stands for Annual Percentage Rate, and it is a term used to describe the interest rate you’ll be charged if you carry a balance on your credit card.
Credit card companies typically charge interest on the outstanding balance on your account each month, and this interest is expressed as an APR. The APR is expressed as a percentage and is applied to your balance to calculate the interest charges that will be added to your account each month.
For example, if your credit card has an APR of 20%, and you carry a balance of $1,000, you would be charged $200 in interest over the course of a year (assuming you didn’t make any payments during that time).
It’s important to note that not all credit cards have the same APR, and the rate you’re offered will depend on a variety of factors, including your credit score, credit history, and the type of credit card you’re applying for. Generally, credit cards with higher rewards and benefits may come with higher APRs.