Purchase APR

Purchase APR
The annual percentage rate that applies to outstanding balances on purchases made using a credit card. The purchase APR is the interest rate charged on the remaining balance for any purchases made with the card, if the total balance of a credit card is not paid in full each month. When the balance is paid in full each month, no purchase APR finance charges would be applied.

Lenders are required to disclose the different APR rates that apply to various balances and transactions. While the purchase APR applies to balances on purchases made with the card, other APR rates that must be disclosed include the balance transfer APR, the cash advance APR, the introductory APR and the penalty APR.


Investment dictionary. . 2012.

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