Can someone please explain annual percentage rates to me (credit cards)? What is the diference betwe

that has 9.99% A.P.R, one that has 24.05%, one that has 20.15% and one that has 24.9%? I realize they have diferent values but which one should I get? I%26#039;d guess the 9.99% one, but why? What is A.P.R and how does it work? If someone could explain that would be great because I don%26#039;t understand financial things so well.

Can someone please explain annual percentage rates to me (credit cards)? What is the diference between one?

APR is the Annual Percentage Rate. That%26#039;s the amount of interest you pay to a credit card company for using credit. If you run up a bill of $100 and the APR is 12%, then the credit card company will want you to pay them $112 for your $100 purchase.

A credit card costs more than paying in cash.

Of course this is a simplistic explanation. There are thing like proration to consider. Also, many credit card companies also charge additional fees -- late fees if you don%26#039;t pay on time, fees for withdrawing cash, etc.

The bottom line is, if you don%26#039;t understand financial things so well then you should NOT get a credit card. Lots of people end-up going bankrupt due to credit cards. Credit card companies often hide their fees so that you don%26#039;t know what you%26#039;re agreeing to until its too late and you owe more money than you can pay. Credit cards are bad news. STAY AWAY!

Can someone please explain annual percentage rates to me (credit cards)? What is the diference between one?

The 9.99% one is the best. The lower the percentage the better the deal. Here%26#039;s how it works (and this is true of car loans and home loans too).

Annual means just that - one year. In one year they charge you a total of 9.99%.

So to calculate how much interest is being charged every day do simple division. Divide 9.99 by 365 (number of days in the year). This is .027%. This percentage is the interest rate charged to whatever balance you have on your account %26quot;every day.%26quot;

So if you have a $100 balance on your card, you are being charged 0.027 cents every day in interest (or 3 cents if you want to round up).

The second part to interest is this - Each day that .027 cents is added to your %26quot;balance%26quot; on the card and you are charged interest on that too! So today you pay interest on $100 - tomorrow you pay interest on $100.03. They have big computers that calculate these things out, but that%26#039;s the simple gist of it.

If you look on the bottom of the first page of your statement you should see the daily percentage rate. It%26#039;s usually 4 or more decimal points deep (credit card companies don%26#039;t usually round up like I did).

If your credit is good never get a card with more than 9.99% interest. Cut the other ones up! Or call them and negotiate a lower interest rate. If you%26#039;ve been paying your bills on time they will lower the interest rate. Watch out though! One late payment and they will jack them right back up again. NEVER be late on a credit card payment if you can avoid it.

Hope this was helpful!