In addition to late fees, or fees if you pay off your credit bill late, credit companies have a fancy acronym for how they make money 🤔

💡Annual Percentage Rate (APR) = the total percent cost of borrowing per year 🤓

So, if you borrow $100 with a 10% APR, you would owe an additional $10 per year in interest. 🤑

That means you’d pay a total of $110 back to whoever you borrowed money from! 💰

The APR includes the interest rate, points, payment fees, and other charges you may pay to get a credit card. 🤠

The APR is different from the stated interest rate because it includes other costs associated with the credit card. 🤡

The APR also takes into account the amount of time it takes to pay back the credit card loan. 🤥

An APR helps you compare the true cost of credit cards and loans 🤓

By taking into account all of the costs associated with a credit card, the APR provides a more accurate picture of the true cost of borrowing money. 🤯

So, now you have a tool to understand the real cost of using a credit card 💪