Credit cards and APR

NZGirl_2

I just wondered why when every other type of finance has to disclose an APR, do credit card companies not have to do the same thing. A lot seem to have taken to advising the merchandise interest as per month which has the effect of making it look less scarey! Don't they have an obligation to state the APR?

CLAPTON

they are obliged to state the APR... which cards are you thinking of

NickX

I thought they did have to publish the APR - it should be in the documentation somewhere.

Bear in mind that th APR does not include Balance Transfer fees, so if you are transferring a balance you need to do your own calculations as to whether it will be profitable.

nomoneytoday

They all do show the APR when you open the account, or if the rate changes.

Most cards additionally show the monthly rate as well as an estimated interest amount if you pay off the minimum..

Clariman

They have to quote it on material at the time of application etc., but many just show it on statements as a monthly figure which looks a little less scary. I have written an online calculator that lets you convert from monthly to APR and vice versa.

Clariman
Disclosure. The calculator is on a website which I run as a hobby. MSE sponsors the other site that I run (the stoozing site), but not this one.

NZGirl_2

It may be on documentation somewhere but if they are going to quote an interest rate on the statement, shouldn't they have the APR also? MBNA and Monument definitely only quote the monthly rate on the statement and I think there are others too.


Since the interest rate is extremely important I think there should be a message on the statement indicating any increases. If they can put things like "IMPORTANT INFORMATION Your statement now has a new look" surely they can put IMPORTANT INFORMATION Your interest rate has increased to 25 zillion % or whatever?