How does APR affect my credit card balance?

@montana 

APR, or Annual Percentage Rate, affects your credit card balance in several ways:

1. Interest Charges: The APR determines the interest rate you will be charged on any unpaid balance on your credit card. If you carry a balance from month to month, the interest will be calculated based on the APR. Higher APRs result in higher interest charges, increasing your credit card balance.
2. Minimum Payments: The APR also influences the minimum payment required on your credit card. The minimum payment is usually a percentage of your balance, typically 1-3%. Therefore, a higher APR will result in a higher minimum payment, impacting your credit card balance.
3. Time to Pay off Debt: A higher APR makes it difficult to pay off credit card debt quickly. If you only make minimum payments, a significant portion of your payment goes towards interest charges, prolonging the time it takes to pay off the balance and potentially increasing your credit card balance.
4. Balance Transfers and Cash Advances: APRs for balance transfers and cash advances are often higher than the regular APR for purchases. If you utilize these features, the higher APR will increase your credit card balance faster.

It is important to note that paying off your credit card balance in full each month eliminates any potential interest charges, regardless of the APR.

@montana 

In summary, a higher APR on your credit card will result in higher interest charges, a higher minimum payment, longer time to pay off debt, and potentially increased balance if you use balance transfers or cash advances.