Purchase APR

What does 'Purchase APR' mean

Purchase APR is the annual percentage rate that applies to outstanding balances on purchases made using a credit card. The purchase APR is the interest rate charged on the remaining balance for any purchases made with the card, if the total balance of a credit card is not paid in full each month. When the balance is paid in full each month, no purchase APR finance charges would be applied.

BREAKING DOWN 'Purchase APR'

Lenders are required to disclose the different APR rates that apply to various balances and transactions. While the purchase APR applies to balances on purchases made with the card, other APR rates that must be disclosed include the balance transfer APR, the cash advance APR, the introductory APR and the penalty APR.

RELATED TERMS
  1. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), ...
  2. Terms And Conditions (Credit Card)

    A formal statement of the rules and guidelines that govern the ...
  3. Behavior-Based Repricing

    The changing of a credit card holder’s interest rate based on ...
  4. Purchase Rate

    The interest rate applied to purchases made with a credit card.
  5. Penalty Repricing

    An increase in a credit card’s interest rate that occurs when ...
  6. Minimum Payment

    The smallest amount of a credit card bill that a credit card ...
Related Articles
  1. Credit & Loans

    What's the Annual Percentage Rate (APR)?

    The annual percentage rate, or APR, is the cost per year of borrowing. By law, all financial institutions must show customers the APR of a loan or credit card, which clearly indicates the real ...
  2. Credit & Loans

    Credit Cards: Terms Of Agreement

    By Brigitte YuilleCreditors are required to define the terms of using the credit card, and it's imperative that you learn them. Also, know that the creditor can change the terms and conditions ...
  3. Credit & Loans

    Credit Cards: Choosing A Credit Card

    By Brigitte YuilleNo matter whether you're considering a credit card for the first time, or if you're a current credit card user looking for better rates, you'll need to figure out your spending ...
  4. Credit & Loans

    How To Read Loan And Credit Card Agreements

    The devil is always in the details! Find out what you're signing yourself up for.
  5. Personal Finance

    2015's Best Balance Transfer Credit Card Promotions

    Trying to pay off a credit card balance at too high an interest rate? You might save a good chunk of cash with one of these balance transfer promotions.
  6. Retirement

    Six of the Best Credit Cards for Seniors

    You’re retired, but the expenses don't stop. If you’re looking for a new credit card, which should you choose? Here are six cards for seniors to consider.
  7. Credit & Loans

    Terrible Credit Score? Try These Credit Cards

    When your credit is less than stellar you have fewer choices. But some are still better than others. Here's our read on which cards to get.
  8. Credit & Loans

    The Credit Card Balance Transfer Trap

    Before you transfer a balance to a credit card with a lower interest rate, know how it affects new purchases and other fine-print traps that can cost you.
  9. Investing Basics

    The Interest Rates: APR, APY And EAR

    When most people shop for financial products, all they focus on is the listed interest rate. Human eyes instinctively dismiss the fine print, which usually includes the terms APR (annual percentage ...
  10. Credit & Loans

    Shuffle Away Your Debt With Balance Transfers

    This option can save you big bucks, but only if you watch out for rates and fees.
RELATED FAQS
  1. What loans do and don't have an APR?

    Learn about what annual percentage rates (APR) are and what they mean. Explore different fixed and variable APRs charge by ... Read Answer >>
  2. Do lenders offer floating APRs?

    Learn about credit cards with floating, variable and fixed APRs. Explore introductory rates offered by two leading credit ... Read Answer >>
  3. Why do some credit cards offer introductory APRs?

    Understand how introductory APRs from credit card companies can help or hurt your personal finances. Learn how to use these ... Read Answer >>
  4. Why is APR used to compare long-term loans?

    See what benefits an annual percentage rate, or APR, offers to consumers that other interest rate calculations might not, ... Read Answer >>
  5. What are the differences between APR in Europe and the U.S.?

    Learn how the regulatory authorities in the U.S., the European Union and the U.K. treat the calculation and disclosure of ... Read Answer >>
  6. What is the difference between an interest rate and an annual percentage rate (APR)?

    Comparing the annual percentage rate (APR) on competing loans help you understand the true cost of the loans and make a wise ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center