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It’s helpful to consider two main things about how APR works: how it’s applied and how it’s calculated.

These responses are not provided or commissioned by the bank advertiser.How to calculate APR Many variable interest rates start by using an index, such as the U. They calculate it using a daily or monthly periodic rate, depending on the card.Keep in mind some accounts have multiple APRs, so this calculation may be applied for each one.In this piece, we look at credit card APRs—which you’ve probably seen listed on your monthly statements.Knowing what an APR is, how it’s calculated and how it’s applied can help you make more informed credit card decisions.

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