APR stands for annual percentage rate. This is the amount that the credit granter charges you for the use of their money. For instance, if you have an annual percentage rate of 19.9% on a $2500 balance, your annual percentage rate is divided monthly at 1.65%. If your payment is only 2%, it means that you make a 2% payment of $50. Your annual percentage rate 19.9% divided by 12 got the annual percentage rate for the 12 months of the year. That means the interest that you are charged that month would be $41.25 and your payment was only $50. So you make a $50 payment. If they had $41.25, your balance will always come down by $8.75 when you make your $50 payment. The annual percentage rate, which is actually computed daily, is the rate that you pay on that credit card accounts. They will assess it annually.
