What is APR, Please explain!

chrisuren

Hi Guys,

I'm looking at getting a credit card, the one I'm looking at is the 'aqua classic credit card' as I'd use it to help build my credit rating so I can get a good mortgage when I'm 30+ (21 now)

The only thing that's not making any sense is the APR. It's set at 49.9%. Is that good? What does it mean?

(Sorry if its a bit basic, just really have no idea )

CLAPTON

basically a 49.9% APR means that if you borrowed £100 for one year at that rate you would pay £49.9 interest.

pretty appalling

however, if you use the card and pay in full each and every month no interest will be paid and it will enhance your credit rating


Have you tried asking your bank for a CC? (assuming of course that you manage your current account well)

grumbler

This means that if you borrow £100 and don't pay anything back, then in a year you will owe £149.90.

For a month it would be £103.43

However, the feature of CCs is that if you use the card for purchases only and pay the balance if full every month, you don't pay any interest.

chrisuren

Ah I see, I'm not planning on using it at all like to supplement my income, I'm currently a Student, so will use it maybe twice a month for nothing more than £10 then just pay it off at the end of the month (I work at a bar)

CLAPTON

chrisuren wrote: »

Ah I see, I'm not planning on using it at all like to supplement my income, I'm currently a Student, so will use it maybe twice a month for nothing more than £10 then just pay it off at the end of the month (I work at a bar)

that will improve your credit rating

if you are a student maybe you should try the bank with your student a/c as they often do student CC.

do set up a DD to pay in full so your never forget to pay on time.