how purchase aprs work
the apr on a credit card is an annualized percentage rate that is applied monthly if the advertised apr on a credit card is 19 for example then an interest rate of 1 58 will be imposed on the outstanding balance each month if you pay the balance in full no later than the due date you can avoid paying interest on any purchases that you ve made the time between the end of a monthly billing cycle and your card s payment due date is known as the card s grace period it s only when you carry a balance after the due date that you will have to pay interest on your purchases 2as mentioned any given credit card may come with several different aprs attached the apr on cash advances for example is typically higher than that for purchases in addition the interest on cash advances begins accruing immediately unlike the interest on purchases introductory aprs sometimes referred to as teaser rates are lower than the regular purchase apr sometimes as low as 0 for a period of time 