09.24.08 | Who Cares About APR?
A recent student credit card survey our friends at www.ScholarshipPoints.com conducted showed that 85% of
the students surveyed ranked APR as the most important factor when evaluating a credit card offer. Ask most people that same question and we bet you’d get the same answer. We think that people pay too much attention to APR without really understanding what it is.
APR or Annual Percentage Rate (the amount of interest charged per year on a loan or credit card balance) is a number that is legally required to be stated but that is not really indicative of what you actually pay.
The first reason students pay too much attention to APR is that APR only comes into play when you carry a balance from month to month in your credit cards. This means if you pay off your credit card charges within one billing period you don’t have to pay interest at all. Students worry excessively about a card’s APR and fail to understand the benefits.
We always recommend paying off your balance monthly and charging only what you can pay back. If you do this the most important factor for you is not APR but rather what are the card benefits. Here’s what I mean; I spend $300 on grocery items per month. I pay cash for them every month because I have that number budgeted. If I have a credit card that pays me back 5% cash on groceries with a 20% APR I know I can use that to buy my $300 worth of groceries and that paying it off without incurring interest is no problem. However, I also get $15 cash back which buys me a free pizza or two on the weekends. It goes the same with gas or any other reward.
Now if you do carry a balance its important to know what APR really is. APR is your interest rate but there is a difference between your interest rate and your interest charge. In simple terms, the rate is the percentage of your balance that your interest charge will be based on. The interest charge is the actual number of dollars that you pay for interest, based on your interest rate.
To make this easier to understand let’s look at the math. Strictly based upon APR if you owed $1,000 for one year at a 19% APR you would pay $190 in total divided over 12 months. Since your balance will fluctuate every month however this perfect scenario doesn’t exist. So the real question becomes, how does the credit card company calculate what balance to charge you interest on each month?
The method of interest calculation is where you can get socked if you don’t pay attention and so this is an equally if not more significant question to ask when evaluating a credit card if you plan on carrying a balance.
Credit card interest is calculated on one of three basic ways:
- Average Daily Balance. This is the most common calculation method. To figure the balance due, the credit card company totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day. The resulting daily balances are added for the billing cycle. Then, the total is divided by the number of days in the billing period to get the “average daily balance.” (Tip: making frequent payments whenever you can during the month will decrease the daily balances calculated at the end of the month and save you interest charges!)
- Adjusted Balance. This usually is the most advantageous method for you. The credit card company determines your balance by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases made during the billing period aren’t included. This method gives you until the end of the billing period to pay a portion of your balance to avoid the interest charges on that amount.
- Previous Balance. This is the amount you owed at the end of the previous billing period. Payments, credits, and purchases made during the current billing period are not included.
- Two-cycle or Double-cycle Balances. Issuers sometimes calculate your balance using your last two month’s account activity. This approach eliminates the interest-free period if you go from paying your balance in full each month to paying only a portion each month of what you owe. We really don’t like this method and you should try to avoid it if possible.
From answering your questions via email and in the forums it’s clear that many students do not understand much about APR except big is bad but they are missing the point for sure. Credit card companies rely on all the people who don’t pay off their charges. Responsible credit card use entails charging only what you can pay back in a month or two. If you do that APR is far less important than what your credit card can do for you!
ScholarshipPoints members looking for their blog candy will find APRISDUMB quite a tasty snack. Go to www.ScholarshipPoints.com and enter that code for 20 points! Also be sure to enter those points in the October $10,000 scholarship drawing!
The Student Credit Blog is sponsored in part by:
This Passage really helped me to understand APR more clearly.
September 24th, 2008 | #
This passage really helped me to understand the APR more clearly
September 24th, 2008 | #
This article really helped me understand how APR works and that it could be useful for me.
September 24th, 2008 | #
this passage really helped me out
September 24th, 2008 | #
I had no idea
September 25th, 2008 | #
This passage helped me alot
September 25th, 2008 | #
learned a lot
September 25th, 2008 | #
I’ll consider trying APR
September 25th, 2008 | #
This helped me understand APR better.
September 25th, 2008 | #
If only more students could get the chance to read these articles, it could help the future generations understand how everything plays its role in the community and how it can effect your life.
September 25th, 2008 | #
As for me Credit Cards are a pain, and its better to have a checking account where you can have a debit card. The reason is the interest rates are high, and it’s so easy to just spend when you have a credit card.
September 25th, 2008 | #
I didn’t really understand the benefits of having a student credit card until after reading this passage.
September 25th, 2008 | #
Lots of good info! Very interesting read.
September 25th, 2008 | #
This really helped me understand APR
September 25th, 2008 | #
Now I think I should get a CC that gives rewards back!!!!
September 25th, 2008 | #
Very interesting.
September 25th, 2008 | #
I’m currently paying on my credit card. I was excited about receiving one so I really did not pay attention to the %. This passage also educated me more about APR
September 25th, 2008 | #
Yeah I agree. Great site.
September 25th, 2008 | #
This blog is very important to many who don’t know the hidden cost of having a credit card.
September 25th, 2008 | #
This information gave me somewhat of a better understanding on how APR works.
September 25th, 2008 | #
same here i get it know
September 25th, 2008 | #
I already knew everything about APR that this article talked about.
September 25th, 2008 | #
I had always been told high apr was bad but never really knew exactly what apr stood for or what it really meant and the affect it had on me and my credit.
September 25th, 2008 | #
Important information everyone should read, especially college students.
September 25th, 2008 | #
This was a good article with lots of info
September 25th, 2008 | #
This was not new to me.
September 25th, 2008 | #
yep
September 25th, 2008 | #
old news, but good info
September 25th, 2008 | #
Like most I put more emphasis on the APR than was necessary. I feel better knowing the benefits can outweigh the costs if done correctly.
September 25th, 2008 | #
This is a great article that college students should read, and I found the information very useful for me.
September 25th, 2008 | #
interesting…
September 25th, 2008 | #
i feel much smarter after reading this information.
September 25th, 2008 | #
this was a very informative article. glad that it was published…
September 25th, 2008 | #
Very interesting
September 25th, 2008 | #
this isnt new info to me .. but good for people to find out about…
September 25th, 2008 | #
I hate credit card companies
September 25th, 2008 | #
I knew this already.
September 25th, 2008 | #
this was not useful to me either. you would think this should be common sense to everyone
September 25th, 2008 | #
This article helped me out.
September 26th, 2008 | #
Interesting!
September 26th, 2008 | #
I know that now but when I was able to received my first card I didn’t put enough thought into the APR or just simple trying to search a better definition of what it really meant.
September 26th, 2008 | #
I never know what does it mean… thanks for to
the article now I know
September 26th, 2008 | #
Thanks so much! I’m glad I took the time to read this!
September 26th, 2008 | #
Good article! Awesome.
September 26th, 2008 | #
concise but informative.
September 26th, 2008 | #
This article is very useful and full of information.
September 26th, 2008 | #
Will send as an email to others who need to know this stuff.
September 26th, 2008 | #
learned most of it in accounting in college, but had a lot of stuff not taught. good article
September 26th, 2008 | #
so that’s how it works.
September 26th, 2008 | #
Cool article!
September 26th, 2008 | #
Love the article. Everyone should subscribe to the RSS so that they can read all of these articles and make good decisions.
http://feeds.feedburner.com/StudentCreditCardBlog
September 26th, 2008 | #
this really helped me to understand the APR alot bett
September 26th, 2008 | #
Good Article it will help be careful with my credit card
September 26th, 2008 | #
Great blog, it was a fabulous read. ;D
September 26th, 2008 | #
extremely helpfull
September 26th, 2008 | #
Wow apr thats huge espesial if dont know much about credit an you get stuck with a high apr life beggins to suck a little more every day
September 26th, 2008 | #
Very nice!
September 26th, 2008 | #
Good article. Helped me to understand APR more clearly.
September 26th, 2008 | #
all new info to me. Thanks!
September 26th, 2008 | #
yea
September 26th, 2008 | #
this was pretty good info
September 26th, 2008 | #
It was great information.
September 26th, 2008 | #
thanks
September 26th, 2008 | #
I think that this would be good. I would want to try it to.
September 27th, 2008 | #
Learned a lot!
September 27th, 2008 | #
this is good info
September 27th, 2008 | #
yeh
September 27th, 2008 | #
steve speez know whats i needs
September 27th, 2008 | #
cool. good to know.
September 27th, 2008 | #
i never thought about apr in this light. perhaps it is worth it to get a card that has benefits — but it still seems strange to pay for a credit card (benefit cards are typically $40 a year or so).
September 27th, 2008 | #
Good INFO.
September 28th, 2008 | #
thanks a lot! the info was really helpful
September 28th, 2008 | #
very informative!
September 28th, 2008 | #
it helped a lot to better understand APR.
September 28th, 2008 | #
good information
September 28th, 2008 | #
useful
September 28th, 2008 | #
This was really Helpful
September 28th, 2008 | #
very good info
September 28th, 2008 | #
This helped me to understand APR and realize that people shouldn’t worry about it as much.
September 28th, 2008 | #
This is a very good article, it will help me explain it to my son. Understanding credit card terms is like trying to find your way in a dark maze sometimes. Its easy for people just starting out in life to get in trouble with debt.
September 28th, 2008 | #
very Interesting!
September 28th, 2008 | #
I’m still not to sure about relying on credit cards
September 28th, 2008 | #
Helpful info and great ideas.
September 29th, 2008 | #
I’ve been thinking about getting a credit card for a while. Just wasn’t sure what to look for in one. I found out a bit more than just APR info. thanks.
September 29th, 2008 | #
this is very informative. lol
September 29th, 2008 | #
good information
September 29th, 2008 | #
very informative
September 29th, 2008 | #
very good readd
September 29th, 2008 | #
This article is very informative.
September 29th, 2008 | #
Good Info!
September 29th, 2008 | #
i actually just searched this info…so this article came in handy
September 29th, 2008 | #
this was great
September 29th, 2008 | #
good info
September 29th, 2008 | #
Very detailed and relevant information. Learned a great deal
September 29th, 2008 | #
Very instructive.
September 29th, 2008 | #
I will consider this the next time…
September 29th, 2008 | #
something everyone with a credit card should read
September 29th, 2008 | #
Thanks this really helps alot!!
September 29th, 2008 | #
I applied for The Citi® Dividend Platinum Select® Visa Credit Card for College Students.
September 29th, 2008 | #
Very helpful
September 29th, 2008 | #
I really didn’t know anything about APR befor now. thank you!
September 29th, 2008 | #
Very useful.
September 29th, 2008 | #
informative
September 29th, 2008 | #
I have a big problem with these cc’s they send these applications to you telling you that you have been approved and then when you apply you get a reply saying you don’t have enough credit history to receive a card.how can you not have
September 29th, 2008 | #
I really learned a lot from this reading!
September 29th, 2008 | #
this will help me a lot, thanks.
September 30th, 2008 | #
i really learned alot. thanks
September 30th, 2008 | #
wow. didn’t know half this stuff.
September 30th, 2008 | #
The whole credit industry makes me nervous. I’ll stay away for now.
September 30th, 2008 | #
This is a great article. It was very helpful.
September 30th, 2008 | #
I really didnt know much about APR but i sure do now.
September 30th, 2008 | #
VERY INTERESTING STUFF
September 30th, 2008 | #
I don,t have credit cards yet. Thanks for the info.
September 30th, 2008 | #
i learned alot. thanks
September 30th, 2008 | #
true
September 30th, 2008 | #
A little long but informative.
September 30th, 2008 | #
I really never understood much about it until now.
September 30th, 2008 | #
wow i’m glad i read this there was a lot of stuff i didn’t know about credit cards
September 30th, 2008 | #
This should be required reading during the student loan process for anyone accepting it. If you simple hurry through them, you are doing yourself a disservice.
September 30th, 2008 | #
this really helps out a lot
September 30th, 2008 | #
This was very informative
September 30th, 2008 | #
Most info I already knew. I don’t think Joe Biden read this article. Leave politics out of this. I was trying to get a break.
September 30th, 2008 | #
This showed me a lot i didn’t know about looking for credit cards.. Thanks for the info!!!
September 30th, 2008 | #
very good information
September 30th, 2008 | #
Kinda long read but worth the time
September 30th, 2008 | #
This really helped me understand APR!
September 30th, 2008 | #
This was an excellent article. Unfortunately I did not know these things when I got my first credit card and thought since it had a low APR I could charge up beyond what I could pay and then I felt that each time I made a payment, usually the minimum, I was barely chipping away at the debt. Thank you.
September 30th, 2008 | #
THIS ARTICLE CAN HELP MANY UNDERSTAND CREDIT CARDS MUCH BETTER. I ALREADY PUT MYSELF IN DEBT WHICH IS SOMETHING I WISH I WOULD HAVE KNOWN BEFORE MAXING OUT. =(
September 30th, 2008 | #
i think that credit cards are silly but with the economy being so bad thats what people are turing to to live. i know that my parents had to do that in the last two years and now we are really paying for it.
October 1st, 2008 | #
I think it’s good to have a credit card with benefits.The only way to use a credit card efficiently would be to pay off your bill every month, otherwise you just start having 5 or 6 credit cards and wondering which one will work.
October 1st, 2008 | #
This article helped even a know-it-all like me out!!! Thanks
October 1st, 2008 | #
This arctice was very helpful..i guess i dont know everything about credit cards..
October 1st, 2008 | #
i never knew about thhis it helped.
October 1st, 2008 | #
this was very informational . i think it will help me alot in the long run . i never even know what apr was until now
October 1st, 2008 | #
I had no idea what was available and which choices to make regarding APR. This definitely helped me understand it better.
October 1st, 2008 | #
Wow. Eye opening. Thanks.
October 1st, 2008 | #
Good
October 2nd, 2008 | #
I never thought about how much APR could add up in the long run.
October 2nd, 2008 | #
kool
October 2nd, 2008 | #
Got it? Good! and watch out…it will be going up. I always pay double my minimum at least.
October 2nd, 2008 | #
wow…APR is definitely not good
October 2nd, 2008 | #
Excellent
October 2nd, 2008 | #
I never knew what APR was, nor do I own a credit card. So, this was helpful if I ever use one!
October 2nd, 2008 | #
reading it a second time helped.
October 2nd, 2008 | #
i had problems with APR before…I wish I knew this before.
October 2nd, 2008 | #
wow, how incredibly awful.
October 2nd, 2008 | #
yes, definitely helpful article.
October 2nd, 2008 | #
very usefull
October 2nd, 2008 | #
APR is a part of life, but you must stay aware of it.
October 2nd, 2008 | #
Cool
October 3rd, 2008 | #
This article is easy to read and has a lot of good info.
October 3rd, 2008 | #
helpful! I have credit card debt, so it was nice to finally understand what all those acronyms stood for!
October 3rd, 2008 | #
nice to know, now i dont have to stress so much…they make it seem like its a big deal
October 3rd, 2008 | #
It is always best to to try and stay away from credit cards because they will get you with APR, especially if you ever make a late payment.
October 3rd, 2008 | #
i might start using a credit card know that i know u can receive money
October 3rd, 2008 | #
I might use a credit card now that i know i can earn money while doing so
October 3rd, 2008 | #
very interesting
October 3rd, 2008 | #
vey interesting
October 3rd, 2008 | #
I learned about APR in Economics class. I knew briefly about it, before i read this passage. Now I know that if I make sure I pay any credit card bill in the future, I won’t have to focus my attention on APR.
October 3rd, 2008 | #
Don’t get a credit card if you can’t afford it
October 3rd, 2008 | #
Wow maybe I’ll use my credit card more.
October 3rd, 2008 | #
very interesting
October 3rd, 2008 | #
intriguing
October 3rd, 2008 | #
This was great, i now have better knowledge on my credit cards APR.
October 4th, 2008 | #
I never knew that about APR..i have a credit card but im usually pretty good at paying it on time.
October 4th, 2008 | #
good to know
October 4th, 2008 | #
this is great!
October 4th, 2008 | #
this is great
October 4th, 2008 | #
I don’t have a credit card yet, but when I do decide to get one I will understand clearly what APR really is.
October 4th, 2008 | #
Interesting. In my opinion credit is a pretty dangerous game. It would be better if we only bought things we had the money for instead of borrowing money from some vicious credit card company.
October 4th, 2008 | #
I don’t currently have a credit card, but I found this information to be very helpful for future reference.
October 4th, 2008 | #
this puts me a little at ease.
October 4th, 2008 | #
very interesting and helpful
October 4th, 2008 | #
quite interesting material
October 5th, 2008 | #
very very interesting
October 5th, 2008 | #
very useful information!
October 5th, 2008 | #
this is old news for me, but its very informational.
October 6th, 2008 | #
THIS PASSAGE HELP ME WITH LEARNING MORE INFORMATION ABOUT APR.
October 6th, 2008 | #
wow, very useful info
October 6th, 2008 | #
This article was interesting and insightful.
October 6th, 2008 | #
very informative
October 6th, 2008 | #
interesting….
October 6th, 2008 | #
this was really helpful
October 6th, 2008 | #
Great Info, I feel a lot smarter.
October 6th, 2008 | #
Even though i knew all this stuff, it was still nice to have a refresher. Still good information for people that do not know it already.
October 7th, 2008 | #
Very useful. APR is a challenge to understand, and this breaks it down very well.
October 7th, 2008 | #
Wow, it is very hard to get a grip on understanding APR…but this was very helpful!
October 7th, 2008 | #
the information is very helpful.
October 8th, 2008 | #
it really helps understand apr much more.
October 8th, 2008 | #
Very useful. I learned a lot.
October 8th, 2008 | #
Very useful information.
October 8th, 2008 | #
I dont know that much about APR but this blog helped me understand it more
October 8th, 2008 | #
I didn’t understand what it was about but I now have a little more of an idea, thank you.
October 9th, 2008 | #
I had to learn the hard way by learning what APR is all about. Thanks for this article…it’s very useful.
October 10th, 2008 | #
Feel like I have a better understanding on this
October 10th, 2008 | #
Valuable info gratzi!
October 10th, 2008 | #
This information gave me a better understanding on how APR works.
October 10th, 2008 | #
Very Interesting Article. I will definitely try to pay more during the month to lower my interest rate
October 10th, 2008 | #
Love this site. Great APR information. Credit Card is all about benefit for comsumer if they know how to play the cards right. if you don’t carry balance it a good thing.
October 10th, 2008 | #
very interesting
October 10th, 2008 | #
Good information to know. Can be a real trap if you don’t pay it off each month.
October 11th, 2008 | #
If only people know how to control their spending, and only spend what they can afford to pay back then we won’t be in crisis right now.
October 11th, 2008 | #
Wow! It is shocking when some things are learned.
October 11th, 2008 | #
Wow. I didn’t even know about a lot of the stuff before I read this! It really did help me understand how APR works.
October 12th, 2008 | #
I am highly excited to hear about it for the very first time.
October 13th, 2008 | #
Good information to know.
October 13th, 2008 | #
good to know
October 13th, 2008 | #
i learned alot
October 13th, 2008 | #
Great information.
October 13th, 2008 | #
NEVER REALLY KNEW TILL NOW
October 14th, 2008 | #
I would hope that before people take out credit cards and charde on them they would already understand the info given here or they can get themselves in some serious trouble with debt!
October 14th, 2008 | #
I knew this and that’s why I try to be careful with mines
October 14th, 2008 | #
APR is a dangerous thing especially for college students who dont have experience with loans and credit cards thank you for the eye opener
October 14th, 2008 | #
It is important to know about credit cards and APR. This site was very helpful.
October 14th, 2008 | #
I never really what APR was before.
October 14th, 2008 | #
This is a great way to break down a some what complex issue.
October 14th, 2008 | #
Students need to remember that building credit is important. Abusing credit is what gets them into trouble. Use your cards sparingly and when ever possible pay the entire balance off every month.
October 14th, 2008 | #
just about what I thought about credit cards.
October 15th, 2008 | #
good info.
October 15th, 2008 | #
GOOD TO KNOW
October 15th, 2008 | #
Nobody understands the real dangers of crdit cards!
October 15th, 2008 | #
good info
October 15th, 2008 | #
Very helpful. Thanks!
October 15th, 2008 | #
food for thought!!
October 15th, 2008 | #
good advice thanks
October 15th, 2008 | #
Very Helpful…especially in times like these.
October 15th, 2008 | #
This info is something that everyone need to read. People should learn at an early age how to protect their credit and use it wisely.
October 15th, 2008 | #
very interesting, did not really know these things on APR
October 15th, 2008 | #
Great info to take into consideration before getting a credit card
October 15th, 2008 | #
Well I’m glad I have a good APR for my month to month balance!
October 15th, 2008 | #
Useful info
October 16th, 2008 | #
Great information. I really didn’t understand the difference before.
October 16th, 2008 | #
this info is very interesting and helped me out a lot
October 16th, 2008 | #
good info
October 16th, 2008 | #
Pretty interesting
(reminds me of personal money management class!)
October 17th, 2008 | #
Thank you for providing me with all this helpful information.
October 17th, 2008 | #
interesting info-thanks!
October 17th, 2008 | #
I did now know how credit APR works before I read this article. Great Info.
October 17th, 2008 | #
Very informative
October 18th, 2008 | #
very informative
October 19th, 2008 | #
Interesting
October 19th, 2008 | #
yes.
October 19th, 2008 | #
well information for our future
October 20th, 2008 | #
Thank you for the very nice Information!
October 20th, 2008 | #
Thank you. This information really helps me!
October 21st, 2008 | #
this was really good info!
October 21st, 2008 | #
I knew this already. I just finished a business math class.
October 21st, 2008 | #
this was insightful
October 21st, 2008 | #
THIS ARTICLE WILL DEFINITELY BENEFIT NEWCOMERS ON KNOWLEDGE ON HOW TO GET THE STUDENT CREDIT CARD
October 21st, 2008 | #
I now have a better understanding of what APR is all about. thanx.
October 21st, 2008 | #
now have a better understanding of what APR is all about. thanx
October 21st, 2008 | #
thanx
October 21st, 2008 | #
Thanks!!! This helped me understand alot better.
October 22nd, 2008 | #
VERY USEFUL INFORMATION
October 22nd, 2008 | #
it really is very interesting
October 22nd, 2008 | #
Thanks I found this helpful. It will help me
October 22nd, 2008 | #
This information was very helpful
October 23rd, 2008 | #
GOOD
October 23rd, 2008 | #
good to know
October 24th, 2008 | #
I had no idea that’s what APR means, and that’s good to know, since I pay my credit card fully every month!
October 24th, 2008 | #
This blog gave me a better understanding of what APR is. So now I will make sure that I’m will be looking for the lowest one.
October 24th, 2008 | #
thanks. it really helped me out. now i know what to look out for.
October 25th, 2008 | #
ARP is difficult to understand but this really made it easier to grasp!
October 25th, 2008 | #
Great!
October 25th, 2008 | #
yea def really helpful
October 25th, 2008 | #
Cool info.
October 26th, 2008 | #
good info… still a pain!!!
October 26th, 2008 | #
I never knew that was APR meant and I want to be on the lookout fot the lowest one. I learned something new!
October 26th, 2008 | #
this gave me some new knowledge, if given a 0% apr for a year however is that a good or bad thing now? is there a secret behind it where itll get you i debt sooner or later
October 27th, 2008 | #
now i understand more
October 27th, 2008 | #
APR is surely important. I am glad I read this blog.
October 27th, 2008 | #
Very useful information.
October 27th, 2008 | #
This is a very interesting blog. I was miss-informed before, thank you for the new information.
October 27th, 2008 | #
I had no idea what APR was until now…this was helpful.
October 27th, 2008 | #
This blog has helped truly understand what APR is. I appreciate the information.
October 28th, 2008 | #
When credit cards are sent, the fine print has alot of valuable information that explain what things are if you don’t understand. Also, on things llike that it’s wise to call the customer service with any questions you may have
October 28th, 2008 | #
references were great
October 28th, 2008 | #
good stuff
October 29th, 2008 | #
WOOT that was a fun read!
October 29th, 2008 | #
This was helpful
October 29th, 2008 | #
APR is very important, so pay your bill and a good amount of it when you have 0%
October 29th, 2008 | #
Now I understand the APR concept. Thanks!
October 29th, 2008 | #
APR is good to know about. Useful blog.
October 29th, 2008 | #
Thank you for this article. As a student who has two credit cards, it’s really important to understand all the lingo the companies use.
October 29th, 2008 | #
Quite some useful stuff
October 29th, 2008 | #
Stuff everyone should know…
October 29th, 2008 | #
This was very informative and eye openin. thnx for your info
October 29th, 2008 | #
Unfortunately I’m learning the hard way. I wish I had found this article sooner.
October 29th, 2008 | #
This was helpful
October 29th, 2008 | #
Very Important Information…
October 29th, 2008 | #
This article is really helpful to me because I keep getting credit card offers in the mail and its hard to compare them to see which one is better when I don’t know what any of it means, but i understand now.
October 29th, 2008 | #
Really helpful information!
October 29th, 2008 | #
this was helpful
October 29th, 2008 | #
Wow … that was very insightful =D
October 29th, 2008 | #
I found the article to be very helpful. Being a freshman in college I am finding out the value of the dollar. I’ve thought about getting a credit card, but I will now wait until I know I can handle it.
October 30th, 2008 | #
I already knew a little bit about APR but this passage helped understand more.
October 30th, 2008 | #
this really helped me alot because I thought it was different this cleared up alot of questions I had about APR
October 30th, 2008 | #
Thanks for the insight!
October 30th, 2008 | #
I always try to pay my credit card charges within the 30days of pruchase so I don’t accrue, but I am not going to look at a card that also gives bonuses back.
October 30th, 2008 | #
I always try to pay my credit card balances within the same 30 day period sdo i don’t accrue interest charges. I am not going to lok at a credit card with the bonus back offers.
October 30th, 2008 | #
I liked the article
October 30th, 2008 | #
Very interesting
October 30th, 2008 | #
you learn things everyday
October 30th, 2008 | #
Interesting article.
October 30th, 2008 | #
Useful info.
October 30th, 2008 | #
good information and credit card links
October 30th, 2008 | #
Very helpful..!!! I loved it
October 30th, 2008 | #
Nice info!!
October 31st, 2008 | #
Thank you I learned a lot
October 31st, 2008 | #
thanks =]
November 2nd, 2008 | #
good=]
November 3rd, 2008 | #
i don’t think having an credit card is great because of all the nterest you have to pay
November 3rd, 2008 | #
wow.
November 3rd, 2008 | #
WOW!!!
November 4th, 2008 | #
this really helped me understand more about my current credit card.
November 10th, 2008 | #
This really explains it for me!! I’m trying to get mine paid down so understanding what I am paying really helps.
November 12th, 2008 | #
You shouldn’t have a credit card if you don’t know what APR is. Plastic is really easy to spend. Before you know it you could have a significant amount of debt. USE CASH – save the card for a real emergency.
November 12th, 2008 | #
Great information! It will be helpful in the future.
November 14th, 2008 | #
Now this will help me get somewhat out of debt!
November 16th, 2008 | #
Cool. You learn something new everyday.
November 19th, 2008 | #
wow that really helps
November 20th, 2008 | #
Wow! This is very important information for students like myself. Now I understand more what APR really is and how it works. Also the 5% rewards and such like that would really help. Thanx!!!
November 21st, 2008 | #
What is interesting is EAR (effective annual rate) which is where the money really comes into play…
November 21st, 2008 | #
really liked the article!
November 21st, 2008 | #
Thanks for the options u give at the end of every article! I wish i knew about these options earlier!
November 23rd, 2008 | #
VALUABLE INFORMATION
November 23rd, 2008 | #
I CARE! But hey, its really helpful to learn that getting a credit card for the gas we use everyday save us this much!! what a awesome opportunity
November 24th, 2008 | #
Thank you great site
November 26th, 2008 | #
Ill keep APR in mind. GREAT CONSIDERATION!
December 5th, 2008 | #
Thanks for sharing, I have learned a lot as well!
December 6th, 2008 | #
Oh, so that’s how it’s calculated. Never really knew much about APR, myself.
December 10th, 2008 | #
I know how credit cards work and know what the APR is. They should all be abolished, shredded, cut-up, and trashed. It’s a plastic World that’s why were in all this trouble. Let’s live within our means. CASH is the ONLY way to go!!!
December 17th, 2008 | #
Hey Niccole,
I’m going to have to politely disagree. People get/got themselves into trouble. The U.S. housing market was booming and lenders loosened standards to accommodate folks who had no business taking out mortgages in the first place. Everyone thought this would be fine by just repackaging these loans and selling them off to investors….I digress.
Point being, these little pieces of plastic in the hands of responsible people are key to building credit and insuring your ability to do things like own a car, own a home, start a business, and anything else you can think of that may require a loan. In reality, credit card companies are giving you small monthly loans, and how diligent you are at paying those loans back (your monthly bill) will mean everything down the line.
Our rule of thumb is to never carry a balance (never buy more than you can afford). You wouldn’t think about defaulting on your mortgage payment, right? So why do so for your credit card?
December 18th, 2008 | #
Thank you. I didn’t really know anything about APR until now.
January 2nd, 2009 | #
sounds good !
January 11th, 2009 | #
great stuff
January 23rd, 2009 | #
This was a very informative article. I’ve never payed much attention to this, so thanks for the tips.
January 27th, 2009 | #
I never understood APR correctly, but this helped me to.
January 31st, 2009 | #
Thanks. I never really understood the concept of APR. This will help me choose what credit cards I apply for.
February 3rd, 2009 | #
Thanks a lot! It will help me save.
February 4th, 2009 | #
thanks a lot! I understand what APR means now. This will help save money.
February 5th, 2009 | #
thanks it really helped me understand what APR means!
February 11th, 2009 | #
thanks
February 11th, 2009 | #
thanks.
February 13th, 2009 | #
i concur
February 15th, 2009 | #
This article helped a lot! Now I have a better understanding of APR.
February 15th, 2009 | #
Very helpful information. This will help me to control financial charges fee.
February 26th, 2009 | #
Wow. This was very informative!
February 26th, 2009 | #
Wow! I didn’t understand what apr meant before. I know I really need to check my apr on all of my credit cards.
February 27th, 2009 | #
Interesting…
March 4th, 2009 | #
ok now I understand
March 4th, 2009 | #
wow i didn’t know about this before
March 5th, 2009 | #
YAY! awesome info!
March 7th, 2009 | #
Great information. Really helps you understand the true cost of using credit cards.
March 12th, 2009 | #
Finally information in words that I can understand!
March 15th, 2009 | #
This was a very informative blog on APR and on understanding credit accounts in general.
March 29th, 2009 | #
thanx!!! always useful
April 3rd, 2009 | #
very good information
April 10th, 2009 | #
very helpful
April 13th, 2009 | #
The thing is people alway may start off with the best intentions but may stray off with the payments, so i’d just be careful.
May 16th, 2009 | #
Great information that everyone should know!
May 18th, 2009 | #
Good information to know. I was confused about APR also.
June 3rd, 2009 | #
great information to know…. i understand better for real….
June 6th, 2009 | #
APR- APR-APR-APR as if we don’t have enough to think about already. Good to know that it isn’t as important as it seems.
Thank you for taking it down a peg.
June 10th, 2009 | #
very informative.
June 13th, 2009 | #
Avoid credit cards if you have no self control.
July 11th, 2009 | #
OKay this really helped
July 14th, 2009 | #
okay
July 14th, 2009 | #
Great article!!!!!!!!!!!Thanks a lot!
July 15th, 2009 | #
This actually helped me understand the financial situation I’m in right now. Thanks!
July 16th, 2009 | #
this was very informative
July 23rd, 2009 | #
It was a good point that APR doesn’t matter if you pay off your balance in whole every month.
July 24th, 2009 | #
I think it was a good point that APR doesn’t matter if you pay off your balance in whole every month.
July 24th, 2009 | #
Wow, now I no the truth.
July 24th, 2009 | #
This was really informative! Thanks, guys!
July 25th, 2009 | #
Informative but in the end just pay your bill on time is the lesson.
July 26th, 2009 | #
Informative, but i feel just paying your bill is the only remedy and good piece of advice when dealing with credit cards.
July 26th, 2009 | #
Great Article, this helped answer a lot of my questions dealing with credit cards.
July 26th, 2009 | #
Wow, I really could have used this info a long time ago.
July 27th, 2009 | #
very useful info
July 27th, 2009 | #
THIS IS A GREAT WEBSITE TO UNDERSTAND APR!!!
July 27th, 2009 | #
Very helpful!
July 27th, 2009 | #
Great article
July 28th, 2009 | #
Great way to learn APR
July 28th, 2009 | #
No Thanks
July 28th, 2009 | #
Helped me alot =)
July 29th, 2009 | #
hmmm…seems ok
July 29th, 2009 | #
INFO HELPFUL, BUT ALREADY KNEW MOST.
July 29th, 2009 | #
Very Helpful! If only I was 18 again to have it to do all over again
July 29th, 2009 | #
Very helpful!
July 29th, 2009 | #
good to know… Great info!
July 30th, 2009 | #
very informative article-every one should read it!
July 30th, 2009 | #
very informative article-should be read by everyone!
July 30th, 2009 | #
It is very informative. Thanks
July 30th, 2009 | #
Thanks for the info, but I am paying all my bills by the due date. With the exception of my (future) student loan… of course.
July 30th, 2009 | #
Great, thank you!
August 3rd, 2009 | #
This really helpmed me to understand how apr works much better! Thanks!
August 6th, 2009 | #
WoW interesting, and I thought listening to my mom about getting a credit card would be the worst thing!!
August 6th, 2009 | #
very good info
August 6th, 2009 | #
very helpful
August 6th, 2009 | #
Good info on APR’s
August 7th, 2009 | #
This should be handed out at every college orientation and enclosed with every college application.
August 7th, 2009 | #
interesting
August 7th, 2009 | #
interesting and informative
August 7th, 2009 | #
Now I understand APR more, thank you for this article!!
:)
August 7th, 2009 | #
I am an older student who has had some experience with credit cards. In the past I always looked at APR and judged by that; however, I have never thought about what the credit card can do for me. This was a very interested artical and I am excited to put my new knowledge in practice.
August 8th, 2009 | #
I have a pretty good understanding of how credit works and interest charges involved. My parents have educated me on how not to get in trouble with credit but also educated me on the need to establish a good credit history. I will always live within my means. If you can’t afford it, now or later, don’t buy it!
August 9th, 2009 | #
Thanks. This really helped me understand a little more.
August 10th, 2009 | #
I now understand APR and the importance of watching it.
Thanks
August 10th, 2009 | #
This passage was really easy for my to understand. There weren’t big hard words that I had to look up, and I appreciate that. It is really hard for “younger” people to find someone who can explaine something in “laymans-terms”. I was 100% against getting a creadit card for a few reasons, and now, from reading this passage, there is one less reason!
August 11th, 2009 | #
Wow!!Learn something new everyday huh??
August 11th, 2009 | #
Wow!! You learn something new everyday.
August 11th, 2009 | #
Great information.
August 11th, 2009 | #
this is really good to read.
August 11th, 2009 | #
oh that makes sense
August 11th, 2009 | #
interesting
August 11th, 2009 | #
I UNDERSTAND ABOUT WHAT APR IS ALL ABOUT!
August 11th, 2009 | #
helpful
August 11th, 2009 | #
now i know what APR is all about
August 13th, 2009 | #
good info
August 13th, 2009 | #
I’m glad I only have a debit card because I understood that but I wouldn’t wanna over do it with the card.
August 13th, 2009 | #
yessir
August 13th, 2009 | #
This article really helped my understand APR and how it can affect me.
August 14th, 2009 | #
This really helped me to understand about APR
August 14th, 2009 | #
This is really going to be useful one day…now I know what APR is all about.
August 14th, 2009 | #
This something good to remember. Now I actually know a little more about the financial world. I will definitly consider this site next time I have to deal with this stuff
August 14th, 2009 | #
this really helped explain a lot to me and how it affects me!!
August 15th, 2009 | #
This article really helped explain how APR effects me!!
August 15th, 2009 | #
I concur
August 15th, 2009 | #
My dad is always talking about APR. What is the APR on your student loan. I didn’t know what it was until now. This helps.
August 15th, 2009 | #
I never knew it worked like that. thanks
August 15th, 2009 | #
This takes the some of the fear out of getting a credit card.
August 15th, 2009 | #
that really helped me understand apr and easier ways not to screw my credit
August 16th, 2009 | #
I understand now what the importance of APR is.
August 16th, 2009 | #
APR’S WILL KILL YA
August 16th, 2009 | #
Wow…i get it now!!!
August 16th, 2009 | #
omg! i didn’t know what APR was really for. But i went ahead and got the Student Forward Visa. Well im glad i’ve told myself to only use the credit card when i have the money. But yea, that makes alot of sense, the APR, and how it doesn’t really affect the reasons why you choose the card, but rather you should focus on the benefits. Nice article!
August 16th, 2009 | #
good information.
August 16th, 2009 | #
If i had known this when I got my credit card, I would have been much better off. I used to pay it in full every month, but got lazy and now have a running balance and…in short, not good.
August 17th, 2009 | #
just checked my balance…uggh. More interest accumulated.
August 17th, 2009 | #
good read interesting info
August 17th, 2009 | #
Stuff like this should be taught early on, like in high school, right before students enroll into college.
August 17th, 2009 | #
I don’t have a credit car so most of this doesn’t make sense, but when I do get one, I will keep this in mind.
August 17th, 2009 | #
I just got a credit card every one denied me for a while. But when i did finally receive one i pay the bill like three timees a month every time i get paind i out money on it, to me this is the best way. If you have it py your bill it will help you in the future
August 18th, 2009 | #
I understand how a credit card works now. But i still don’t want to get one yet.
August 18th, 2009 | #
Great information
August 18th, 2009 | #
I hope I don’t have to use credit cards.
But the information did make sense.
August 18th, 2009 | #
I understand APR more clearly now
August 18th, 2009 | #
did not know to much about apr and know i know tons more about it. this blog/ article helped me a lot to understand the meaning of credit cards and how good it is to have low apr.
thanks.
August 18th, 2009 | #
This was some good information. I also try to pay off any charges so that the cycle doesn’t charge me for interest.
August 18th, 2009 | #
Great information…
August 18th, 2009 | #
That makes a lot of sense.
August 19th, 2009 | #
This Passage really helped me to understand APR more clearly
August 19th, 2009 | #
I understand the credit card now. Seems really useful!
August 19th, 2009 | #
thanks, this was very informative.
August 19th, 2009 | #
this helped me understand APR
August 19th, 2009 | #
was very helpful
August 19th, 2009 | #
It is very important because many students are nor aware of the APR accumulated for the loans they take our during their University years and this information is very helpful.
August 19th, 2009 | #
This was helpful to understand the interest rate on my loans
August 19th, 2009 | #
I have had many credit cards and never realized that. I thought that they only could use the ARA if you did not pay the bill on time or in full.
August 19th, 2009 | #
sweet
August 19th, 2009 | #
Interesting!
August 20th, 2009 | #
Thanks I did know that
August 20th, 2009 | #
interesting info, never really knew much about banking b4
August 21st, 2009 | #
awesome
August 21st, 2009 | #
i never knew this!!!
well now i kno.
thanks
August 21st, 2009 | #
that’s how they getcha!
August 21st, 2009 | #
Very valuable information that everyone needs to know.
August 21st, 2009 | #
interesting information… definitely helped me more than business class in high school
August 22nd, 2009 | #
This is pretty useful. Now I know to be careful when I am in college!
August 22nd, 2009 | #
This was an interesting article because I was going to apply for a credit card soon. Now I know what to watch out for and not get sucked into.
August 22nd, 2009 | #
This passage really helped me to understand the APR more clearly
August 23rd, 2009 | #
Good info. The reCAPTCH below also helps a literacy program when you type in the words.
August 23rd, 2009 | #
Now I know more about why watching your APR is important. first importance
- credit
second
-APR
August 23rd, 2009 | #
Great information. Very informative.
August 24th, 2009 | #
I definitely learned a lot from this article, and I also received a lot of information and insight.
August 24th, 2009 | #
this Article helped me understand a lot about wat exactly APR is and how it works.
August 25th, 2009 | #
There should be a class in high school that teaches you all about credit cards. This information was informative.
August 25th, 2009 | #
This helped me to understand better.
August 25th, 2009 | #
Wow, there’s so much more to consider when getting a credit card, very useful information.
August 25th, 2009 | #
i like this article…it has very good information
August 26th, 2009 | #
I liked this advice with the 300 dollars. pay your stuff offfff!!!!!
August 26th, 2009 | #
love it : )
August 26th, 2009 | #
wow.. truly helpful!
August 26th, 2009 | #
very ineresting and usefull information. There should consider having a class in high school on this.
August 26th, 2009 | #
Be very careful with credit cards. The APR can also rise if not paid on time.
August 27th, 2009 | #
Nice to know
August 27th, 2009 | #
I LEARNED SO MUCH ABOUT CREDIT CARDS NOW I UNDERSTAND MORE ABOUT WHY THY COST SO MUCH AND ABOUT APR
August 30th, 2009 | #
i learned alot about different aprs through the information here
August 30th, 2009 | #
helpfull, but knew most of it already
September 8th, 2009 | #
Good read!
September 9th, 2009 | #
very helpful!!!
September 9th, 2009 | #
i really liked this article, i learned alot about aprs
September 9th, 2009 | #
from this article i’ve learned that if you want to avoid an interest charge – don’t carry a balance into the next month!
September 14th, 2009 | #
ok
September 15th, 2009 | #
Wow. This can be really useful especially in this time (because of the economy).
September 16th, 2009 | #
This essential information
September 17th, 2009 | #
GREAT BLOG, NOW I UNDERSTAN MUCH BETTER HOW TO MAKE MY PAYMENTS ON MY CCS
September 18th, 2009 | #
I remember when they tried to teach something like this in school, a lot of kids just blew it off because it seemed like too much math to do for something so simple. If I show them this article I bet they would pay attention now…
September 24th, 2009 | #
helpfull information for students
September 28th, 2009 | #
I didn’t know what a APR till now
September 30th, 2009 | #
I UNDERSTAND WHAT IT IS TELLING ME
September 30th, 2009 | #
Information is very helpful for students going to college.
September 30th, 2009 | #
this information was useful
October 3rd, 2009 | #
I was completely lost before reading this! thanks for the information
October 7th, 2009 | #
Excellent information!
October 8th, 2009 | #
I had no idea Tip: making frequent payments whenever you can during the month will decrease the daily balances calculated at the end of the month and save you interest charges I am definitely going to start doing this. Thanks for the advice.
October 8th, 2009 | #
This understandable now, Thank to the writer of this artical
October 11th, 2009 | #
very instructive
October 13th, 2009 | #
all of that information was really helpful with my interest in this specific situation that I am in now.
October 14th, 2009 | #
tRUE, I DONT CARE.
October 14th, 2009 | #
Didn’t know APR until this website.
October 14th, 2009 | #
I know the APR does count, especially if the interest rate is higher. It is true if you make several payments during the month, your balance will disappear before you know it, if you do not misuse your card. Hope this helps.
October 17th, 2009 | #
I had no clue about APR! very interesting.
October 18th, 2009 | #
A painful long passage…but very important!
October 18th, 2009 | #
I like this article
October 18th, 2009 | #
Iknow what APA mean now. I be looking for it when I apply for a credit card. Thank for the information.I pass it on.
October 18th, 2009 | #
really helpful
October 19th, 2009 | #
Great!!!!!!!!!!!!!!!!!!!!! I’m glad I read this article because, truthfully, I didn’t know what APR was.
October 19th, 2009 | #
I had no idea.. this was very helpful
October 20th, 2009 | #
this helps me a lot, i really did not know what APA meant.
October 20th, 2009 | #
intresting!!
October 20th, 2009 | #
it is good to know this
October 20th, 2009 | #
very helpful, presents good information that people should know.
October 22nd, 2009 | #
agreed
October 22nd, 2009 | #
really interesting
October 24th, 2009 | #
Ah, ignorance. Never truly bliss.
October 24th, 2009 | #
very helpful
October 25th, 2009 | #
It is great to know this infor
October 27th, 2009 | #
helped me out
October 28th, 2009 | #
some great information here that everyone should take the time to learn
October 30th, 2009 | #
nice to have some informative info
October 31st, 2009 | #
wow!! everyone needs to know about this
October 31st, 2009 | #
Great to know
November 1st, 2009 | #
ooOOO this really is good to know
November 1st, 2009 | #
did anyone actually read this??
November 1st, 2009 | #
People should really read this. It’s good to know!
November 2nd, 2009 | #
APR is very important when it comes to financing! Very good article as well as a reference to look back at. Highly recommended!
November 2nd, 2009 | #
Highly recommended!
November 2nd, 2009 | #
Very Helpful!
November 3rd, 2009 | #
Wow very useful thanks
November 3rd, 2009 | #
i knew what APR was however i was not sure how it was calculated,this was very much an educational opportunity for me……..
November 3rd, 2009 | #
I was intigued to know there are so many facets of APR but its nice to know that Adjusted Balance is so much better for the card holder.
November 3rd, 2009 | #
I definitely did not know that. Thanks!!
November 3rd, 2009 | #
Personaly, annual interest rates are important when considering the amount charged onto your credit card. For example, a student has two credit cards in which he is paying off monthly. One card is completely maxed out and the other he has not finished using. When taking into consideration the monthly interest rate as well as the annual interest rate, the student will possibly be placed into a position where he may not be able to afford the payments.
November 4th, 2009 | #
I did not know what they were, glad I do now
November 4th, 2009 | #
this would help me big time!
November 4th, 2009 | #
Very helpful!
November 4th, 2009 | #
this info will help me pretty soon. thanks
November 4th, 2009 | #