I am looking at APR details and want to understand how it works.

I see a credit card that says:

  • Introductory APR - 0% for 15 billing cycles
  • Standard APR - 14.74% - 24.74% variable
  • Balance Transfer Fee 3% of each transaction (minimum $10) ( I think this is to pay another credit card)

I want to understand what each one means. Plus also I want to understand that if I pay BEFORE the due date, I will not be charged any interest.

1 Answer 1


It works like this.

  • For the first 15 "billing cycles" (meaning monthly statements) you will pay no interest on purchases. (You don't say so, but I'd bet you will pay interest on cash advances).
  • After that you will pay a variable interest rate of between 14.74% and 24.74% on purchases. This presumably depends on the general interest rate at the time.

This does not tell you anything about how much interest you pay if you settle before the due date.

Most credit cards charge no interest if you settle before the due date every month but it depends on the card. Read the rest of the terms. They will tell you.

  • 1
    thanks, yes, it says "Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month." Commented Jun 3, 2022 at 20:15
  • 3
    Note that the 0% interest is typically contingent on you paying minimum due on-time each period.
    – Hart CO
    Commented Jun 3, 2022 at 20:55
  • 2
    The variable interest rate might explicitly say "Prime + XX.XX%" depending on your credit rating. Commented Jun 4, 2022 at 12:01

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