Cuckee.com

Never since the invention of credit card in early late 1890s have the fee structures and interest rates been so confusing for its users. There are multiples charges and interest rates levied on the card and on the top of that there are multiple ways of calculating the same interest rate. As to if this was not enough every card has its own terminology and its own meaning.

A lot of information is available on the internet for credit cards but it is equally confusing. Sites like credit cards club do attempt to simplify the information on the cards and their types and the process of choosing upon your cards. One of the most common charge or interest rate levied upon the transaction is the APR – Annual Percentage Rate.

An APR does not have a direct impact on your monthly installments. But it does reflect the true measure of the any / all of your credit card transaction cost. The APR generally includes basic interest rate, initial charges/fees, any other interest rate fixed charges etc. There are low intro APR credit cards in the market along with the regular and high APR credit cards.

There’s also the variable APR concept which indicates that the interest rate and the charges defined in the charge clause could change without prior approval or notice. There is however no thumb rules for comparing an APR charge of one loan with that of the other. For example, a 15 year amortized loan might have a lower interest rate but a higher APR because of the fact that that loan fees are amortized over a short period of time compared to the 30 year amortized loan.