What's the most prominent thing about advertising credit cards? This is the credit card rate (or the APR, as we know it). In the credit card world, the credit card rate is the most popular in the world. Many only compare the credit card rate for several credit cards, and only the lowest credit card rate (or APR) is available. In fact, credit card charges are one of the main factors in credit card selection (although they are not the only factor). Therefore, it is still more necessary to understand credit card rates properly.
So what's a credit card or APR rate? Very simply, the credit card rate is the interest rate of the credit card provider on the amount you owe. You will only be charged an interest by the credit card provider unless you make full payments on time. When your credit card bill is received, it specifies the full amount you owe to your credit card provider. Minimum payment is also provided to avoid late payment and other inconveniences (by a certain date). You can either make a full payment or only make a minimum payment. You are not charged any interest if you make a full payment (by the due date).
However, if you choose to pay the lowest amount or a sum less than the full amount, the supplier will charge the interest on the basis of the credit card rate and the balance amount. This is the interest rate you agreed with when the credit card was applied for. As is apparent, an annual interest rate is the credit card or annual percentage rate. This annual credit card rate is used by providers to calculate the monthly credit card rate and then to calculate their equity interest.
The balance here is only full amount– (paid by you). Your next month, the next billing cycle, will add this interest to your balance. If you make a partial payment again, you calculate the new balance again and apply the credit card rate (monthly one) to calculate the new interest and continue until the full payment is made.
In this vicious circle, the credit card rate acts. Therefore, when selecting a credit card, the credit card rate is called the most important consideration.