Credit Card Adverts -APR

SallyCoates

I know that credit card companies have to show a typical credit limit in the 'marketing box' but why? It seems to be connected with th APR, but as credit card comapnies use average daily balance to calculate interest what relevance does the credit limit have on this?

thenudeone

The APR is supposed to include all costs of running the account, which in some cases are fixed (eg: those cards with an annual fee).
Obviously the APR on those cards will vary depending on the balance held.

By using a fictional credit limit (set by the regulator), customers can directly compare the APR of one card with another for a given level of spending.

Joe_Bloggs

I came across this concise site that outlines guidelines/regulations regarding the advertising of credit cards loans etc.

http://oft.gov.uk/about-the-oft/legal-powers/legal/cca/guidance

J_B.