What is the APR?

APR stands for the Annual Percentage Rate and is a standard measurement for showing you the rate you will be charged if you borrow on your card. The APR enables you to determine how competitive a card is. Usually, the lower the APR the less interest you pay.

What is known as the ‘typical rate’ is often advertised by card companies and typical rates are quoted on this site.

When you apply for a card, the lender will assess your application based on the details you provide on the application form and by running a credit check using a credit reference agency such as Experian or Equifax. The lender will then offer you a rate based on its assessment of you as a lending risk, this is known as 'pricing for risk'.

The Consumer Credit Act covers the use of typical rates and states that at least 66% of borrowers should be offered the advertised rate of interest.