Rick Swartz, a counselor with Kern County Credit Consultants, in Bakersfield, CA, says Your APR is the interest rate on the loan. this is why it is also called a revolving line of credit. What makes credit card APRs different is the fact that it is always being applied to a different number, If you fail to make enough of a payment to cover the interest that has built up since your last payment, you will be paying interest on the interest as well as on the amount you owe for purchases or cash advances. Rick Swartz, a credit advisor with Kern County Credit Consultants in Bakersfield, CA, explains that as far as the health and job loss with insurance goes, it’s an extra charge that compiles interest. Unlike auto loans and fixed-rate mortgages, the APR on a credit card can change. Many credit card companies offer a teaser APR to get your business, Swartz explains. Some will be as low as 2.9 percent. But these are more like an MPR – Monthly Percentage Rate – than an annual rate so you go with the card and the rate is lowest for three or six months, maybe even a full year but eventually it will jump up so the idea is to accelerate your payment as much as you can while you have the low rate.

Leave a Comment