How To Understand APR & EAR
| Business : Borrowing APR stands for Annual Percentage Rate. With regards to credit cards, this means the amount of interest that must be paid on the money you have borrowed on credit. When choosing a credit card, one important factor is the rate of APR. If you are a student, some banks offer a special low rate of APR, but you do not have to be a student to benefit from a lower rate - you just have to shop around and see what credit card providers are offering the best deals. EAR stands for Equivalent Annual Rate and is used when you borrow money. It predicts the amount of money you will owe in the future, so the higher the figure, the more you will pay. Dan
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