What's the difference % pa & %APR

sharon1953

I did a life of balance transfer last year, and although the purchase rate is 15.9% variable APR, I am paying 4.9% p.a. for life of balance. I don't understand the difference between the p.a. and APR, so can't tell if I have a good rate. I DO NOT USE THE CARD FOR PURCHASES EVER!

thumshie

For an explanation of APR look at: http://en.wikipedia.org/wiki/Annual_percentage_rate

Basically APR has to take into account any charges(BT fees etc?). However, in your case the two values refer to two TOTALLY different things..

4.9% is for the debt you transfered.
15.9% is for any new purchases - which you don't do so do not apply to you.

In short, it's a good deal, most LOB cards at the moment are 5.8% or higher..

sharon1953

thanks, that's good to know, now wondering if they will let me transfer another balance to them at the same rate!

sharon1953

I applied for a Barclaycard Platinum and once again the wording is confusing me. It says BT is 6.6% for life of balance Annual Interest rate, but in the next column under APR, it's 14.9%. Below is a link to what I am seeing.

http://www.barclaycard.co.uk/landing/summary_box/platinum351.html

thumshie

What your seeing in the Two BT rates they have...

1. 6.3% If you transfer within 60 Days
2. 14.9% If you transfer after 60 Days

wayoflife

sharon1953 wrote: »

thanks, that's good to know, now wondering if they will let me transfer another balance to them at the same rate!

Hello Sharon,

you will need to ring them, and find out. From my experience it sounds as if you have a m&s card from the APR you quoted. They don't have any deals at all for existing customers! this has been going on for about 6 months!

if its with another provider then sorry about the moan!

sharon1953

thanks once again, perhaps they could display that a little better for the not so bright!

sharon1953

wayoflife wrote: »

Hello Sharon,

you will need to ring them, and find out. From my experience it sounds as if you have a m&s card from the APR you quoted. They don't have any deals at all for existing customers! this has been going on for about 6 months!

if its with another provider then sorry about the moan!

Yes that's the card, so no point in trying then!

Bokkens

You should have seen it before they displayed it in this form.
APR is there so you can compare one product directly against another product by using the APR as a indicator as to which would suit you best.
A card can have several APR rates one for cash transactions and cash withdrawls (this is normally very high up to 30% of the amount borrowed (ie.£30 on top of every £100)
The APR rate for using a credit card is normally about 15%-19% for buying goods and failing to pay the bill in full at the end of the month.
If you pay the bill in full every month you will be charged no interest so this 15% won't apply to you.
APR for a BT can start of at 0% for say 9months if you haven't paid in full the BT amount(by the end of the 9mth period/0% period) you will be charged interest at the APR rate next to the BT on your terms and conditions form say 16%.
Ideally you should aim to use a credit card that gives you 0% APR that way you can purchase goods or BT from the card and you won't be charged interest.This won't last forever so check when the 0%APR period finishes and move your debt to a new 0%APR card thereby avoiding paying any interest to the credit card.
Hope that helps with APR's.AER's are similar but are for savings accounts.
I am sure Martin has said it more clrearly than I.

wayoflife

sharon1953 wrote: »

Yes that's the card, so no point in trying then!

Well I have tried about 5 times now. If you want a laugh, you can always ask what deals are available for you and theyll be happy to tell you about a "very high interest savings account" only available for m&s cardholders paying a whopping, you better sit down...5.7% interest woooooo lmao

what I did find out though, when they pointed out all the new deals for "new" customers is that you only have to have closed and settled your account for 1 week before being eligable to apply as a new customer!!!! just remembered what you put in your original post though this wont be beneficial for you as the rate now is 7.9%

I lost out on a similar deal for 0% for 6 months.

well next time you get a deal you might aswell max your limit, as there are no fees to pay with m&s and you can always pay back any money you don't need, or if it works out then stooze the money.

sharon1953

Well I've been tarting for years now, and finally run out of cards, so had to shift to life of balance, now that they charge a % for accepting the BT it's not as good a deal as it used to be.