by 
The Curious Bag
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Before applying for and using credit cards, you need to know the APR, which stands for Annual Percentage Rate. This percentage should be listed in the terms enclosed with any credit card or card application.
APR Vs. Interest Rate
The APR tells you how much you will be paying for carrying a balance in terms of both interest and fees.
Types of APRs
Not all credit cards will have a single APR. Some have different APRs for balance transfers, cash advances, and purchases.
Fixed or Variable
Fixed APRs remain the same over time. They can be increased but not without prior notification from the provider. Variable APRs change, usually in conjunction with some other type of rate, such as the prime rate.
Introductory APR
Some cards do not begin charging interest immediately. For example, the Chase Freedom Visa Card offers a 0 percent introductory APR for the first 12 months.
Effects of APR
The APR may seem small, but small differences can make a big impact on what you owe. If you carry a balance of $5,000 and make $100 minimum monthly payments, you will pay nearly $1,000 more in interest on a card with 18 percent APR compared to a 16 percent APR, according the Credit Card Optimizer calculator.
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