Purchase APR

AAA

DEFINITION of 'Purchase APR'

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.

INVESTOPEDIA EXPLAINS '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. Average Daily Balance Method

    A credit card accounting method where interest charges are based ...
  2. Credit Card

    A card issued by a financial company giving the holder an option ...
  3. Cash Advance

    A service provided by many credit card issuers allowing cardholders ...
  4. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), ...
  5. Annual Percentage Yield - APY

    The effective annual rate of return taking into account the effect ...
  6. Credit Card Authorized User

    Definition of an authorized user of a credit card.
Related Articles
  1. Credit, Debit And Charge: Sizing Up ...
    Credit & Loans

    Credit, Debit And Charge: Sizing Up ...

  2. Take Control Of Your Credit Cards
    Credit & Loans

    Take Control Of Your Credit Cards

  3. How Credit Cards Affect Your Credit ...
    Credit & Loans

    How Credit Cards Affect Your Credit ...

  4. Understanding Credit Card Interest
    Retirement

    Understanding Credit Card Interest

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center