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Purchase APR

Cards & borrowing
The interest rate applied to new card purchases.

Overview

Purchase APR applies when you do not pay the statement balance in full.

Some cards offer 0% purchase periods.

Why it matters

  • It affects the cost of carrying a balance.
  • It influences how expensive everyday spending becomes.
  • It is a key factor in comparing cards.

FAQs

Do I pay purchase APR if I pay in full?

Usually no. Paying the statement balance avoids interest.

Can purchase APR change?

Yes, especially with variable-rate cards.

Related terms

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