UAE: Do you know how your credit card charges you? Knowing can help you save much!

SourceGulf News
SectorFinancial Services

Dubai: When it comes to interest rate charges that are incurred with your loans or debt, you may have seen the term APR, or annual percentage rate, used in reference to everything from home and vehicle loans to credit cards. Here we look at credit card APR, which you've seen listed on your monthly statements. Knowing what an APR is, how it's calculated and how it's applied can help you with your credit card decisions. Credit card interest is calculated using the APR, which is the interest rate, expressed as a yearly (hence annual) rate of interest.

In other words, APR is an annualised representation of your interest rate. When deciding between credit cards, APR can help you compare how expensive a transaction will be on each one. The lower the APR number, the better it is for you. You get to pay less for the privilege of buying things with a credit card. The number will vary not more...