Annual Purchase Rate

Solomon_Broad

I was looking at my credit card statement online today, and I saw "Annual Purchase Rate 12.40%". Now, I always pay for any amount I've used on the card straight away, so when the monthly statement arrives, it always says I've £0.00 to pay. For example, if I buy something costing a fiver from Amazon, I go into my banking straight away and pay the £5 to my credit card company. I've never had to make an interest payment.

So what is this Annual Purchase Rate thing? Does it mean I'm going to be paying 12.4% on everything I've bought on the card over the past year? Will I avoid paying it because I pay the card off in full all the time?

[Deleted User]

You won't pay anything. The APR is charged on money you don't pay off.

But - and please don't take offence - you should probably take a read of your terms and conditions so you know what a credit card is and how it works.

CLAPTON

there is no need to pay off the amount of each purchase immediately

you will get charged no interest if you pay the amount on the monthly statement before the date that is specified

the APR is the rate you would get charged if you did not pay the bill within the permitted time.

Solomon_Broad

Deleted_User wrote: »

you should probably take a read of your terms and conditions so you know what a credit card is and how it works.

You're probably right. :rotfl:

I try to pay off the purchases right away so that I never spend more on the card than I have available in the bank. I like to keep track of where money is going, and I find it so easy to just spend and spend. At least this way, I know where I stand and how much I have left.

Jon_B_2

Most cards have an interest free period. On my Halifax card I don't get charged interest for the first 59 days after a purchase.