YOUTUBE How Does Credit Card APR Work? AdminNovember 15, 2024034 views How does a credit card apr work, and how is compounded? And does that mean? Btw the highest apr in history was 79.9 percent it was by the premier bank back in the days for people with bad credit. OMG Now in this video I’m going to break down how a credit card can either cost you 0% a year or anywhere between 10-35apr annual. I’ll also explain Apr’s on secured credit cards and normal credit cards and what the difference is. So if you want to find how exactly how apr works and if you should also carry a balance stick around to end of this video. What does APR stand for: Apr stands for Annual Percentage rate, basically how much you’ll be charged in interest or how much you’ll a year. Tommy What about APY: Well APY or Annual Percentage Yield is the exact same thing as APR except it takes into account compound interest. And it’s usually higher than APR unless the loan is compounded Annual. Comment if you want a full video on compound interest. Story: If I opened a credit card, and let’s use a real example here. If I opened a discover it card. And I get 25.24% APR what does that mean. How does Credit Card APR Work? Call discover Customer service and ask how it works in full. 1. How does APR work? its your annual interest rate and its calculated daily. 2. How is it compounded Daily on your average balance. 3. What is APY This takes into account compound interest. 4. What is my month APR Grab your Annual and divide it by 12(month in a year) Example 30/12 so your monthly is 2.5% 5. How do I calculate it 12(month in a year) Example 30/12 so your monthly is 2.5% 6. Can I ever get an APR reduction if I increase my credit score Yeah, jsut call in and ask for a reduction and base it on competing credit cards 7. What is the Prime rate The federal rate at which they borrow money from the government 8. How do you guys choose the apr We just have a profit margin 9. What does variable mean APR mean, does it constantly change Changes according to the prime rate which the fedaral reserve can change 10. How can I avoid paying any interest Pay before your closing date 11. What is a closing date This is when your cycle end and they give you your interest for that month. EXTRAS Why do credit cards do 0% apr { so you rack up a balance and pay it off for 5 years) What about loan consolidations, well subscribe and comment and ill make a full video on that? Does the Apr matter? No just don’t carry a balance Thoughts: Now that you understand apr, here are my final thoughts. NEVER EVER carry a balance. Why? If interest in 25% and the average return on Market is 7-12, you literally have to double your return to get even. Play smart Bonus: I have a playlist with almost everything you need to know on credit cards so ill link that in the comments and if you want any videos or have any questions just comment down below. * PRO TIP* INFORMATION IS EVERYTHING 👕Merch👕 https://teespring.com/stores/tommybryson ✅2 FREE AUDIOBOOKS✅ https://amzn.to/2Enayo8¬¬¬ 🎁ACORN FREE $5🎁 Link: https://acorns.com/invite/38EYSU ⚡FREE KINDLE UNLIMITED⚡ (traditional reading) Link: https://amzn.to/2VGbxt9 👨🏽💻DISCORD PRIVATE GROUP👨🏽💻 https://discord.gg/eX4u9N2 My Camera Gear: https://amazon.com/shop/tommybryson ✔ Help Us Reach 10,000 Subscribers: https://goo.gl/0wvm6w Social Media~ Facebook: https://www.facebook.com/tommybryson.yt Twitter: https://twitter.com/TommyBrysonVlog Instagram: https://www.instagram.com/tommybryson Snapchat: tommy28fly source