What is a Purchase APR?

Q:  What is a Purchase APR?

A:  The Purchase APR is the interest rate users pay for purchases made on their credit card.  It differs from a Balance Transfer APR, which is the interest rate paid for funds transferred onto a credit card from another credit card.  APR stands for the "annual percentage rate", also known as the interest paid for a whole year.  It's the fee or finance charge users pay for carrying a balance of debt on their credit card.

Typically if the balance is paid in full each month the finance charge (APR) is waived and the user is not charged this fee.  That's why, if at all possible, it's always a good idea to pay off your entire balance (or as much as possible) each month.  If this isn't possible, it's smart to consider a Low APR Card.

Low APR cards offer a low or 0% APR for an introductory period.  This means that the user can carry a balance and not be charged for it during this period.  Some of our top-ranked APR cards include the Citi® Platinum Select® Visa, which has a 0% Purchase and Balance Transfer APR for a lengthy 21 months.  We also like the Citi® Diamond Preferred® – $200 Statement Credit card, which features a 0% Purchase and Balance Transfer APR for 18 months AND a $200 statement credit after you make $500 online purchases in your first 3 months.

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