APR & AER

Alex9384

Sandtree said:

It should be because APR is total cost of borrowing of £1,200 for 12 months for a credit card... an AmEx BA Premier card has an APR of 101% whilst paying off the card in full each month does mean you dont pay interest you cannot simply ignore the APR because it includes the £250 annual fee that is still payable in full irrespective if you clear the balance each month or not.

But annual fees are also stated separately, aren't they?
Even if you don't understand the APR, in the info about the card you will see what the annual fee is.

Are there some cards that try to hide annual fee and only show you APR?

Sandtree

Alex9384 said:

Sandtree said:

It should be because APR is total cost of borrowing of £1,200 for 12 months for a credit card... an AmEx BA Premier card has an APR of 101% whilst paying off the card in full each month does mean you dont pay interest you cannot simply ignore the APR because it includes the £250 annual fee that is still payable in full irrespective if you clear the balance each month or not.

But annual fees are also stated separately, aren't they?
Even if you don't understand the APR, in the info about the card you will see what the annual fee is.

Are there some cards that try to hide annual fee and only show you APR?

Most will state the annual fee separately and many will also complain that they have to include the annual fee in the APR... the worst APR credit cards are not sub-prime but mid/high net worth cards because they come with high fees. One bank in particular used to rant about £1,200 being a ridiculously small value for its customer base but its the legal requirement for calculation of APR for credit cards

In a lot of simplified views, eg https://www.barclays.co.uk/credit-cards/, it shows their Rewards+ card as having 72.4% APR... only when you click through you see its equiv to 23.9% exc the fee plus £240 PA fee

[Deleted User]

Thanks everyone, this helps a lot.