Questions tagged [apr]
Annual Percentage Rate
77
questions
38
votes
8
answers
7k
views
Is 0% APR ever a bad idea?
I have recently purchased a few large items of furniture for my new home and paid a ~25% deposit on these. To pay off the remainder I can pay in full or pay monthly with a 0% APR payment plan.
e.g I ...
- 1,668
32
votes
2
answers
26k
views
Why does my car loan interest go up despite making payments on-time?
In my first payment on 06-17-2016, the principal applied to my balance was $186.76 and the interest was $107.50. As I kept making the payment on-time, the second payment on 07-25-2016 was a bit of a ...
- 281
26
votes
7
answers
8k
views
Debt management: 0% CC APR for 15 months vs 7% student loan debt
About me:
I make about $3330 a month from my job after taxes.
I'm currently $72,500 in debt from student loans, 7% APR. I have 0 other forms of debt (I live with my parents and bought a used car for ...
- 1,030
25
votes
7
answers
22k
views
Should I pay for a computer up-front or on finance?
This reads a bit like a home-work question, but this is actually my situation. The job I've taken is a BYOD (bring your own device), workplace and I prefer to use my own equipment.
I've just started ...
user67312
24
votes
3
answers
5k
views
20% APR means only 10% interest? (UK)
I am trying to get better grasp of what the APR figure means, so this example is purely hypothetical.
I have entered a loan of £100,000 into an APR calculator on MoneySuperMarket with a 20% APR for ...
- 343
19
votes
2
answers
4k
views
What is Cash Advance APR?
I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%.
Can someone tell me in layman terms what this means?
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17
votes
5
answers
7k
views
Is it possible for me to keep my credit card APR at 0% permanently?
Right now I'm using the Chase Freedom card, and the terms say that it has a 0% Intro APR for 15 months from account opening on purchases. After the intro period, a variable APR of 15.74% - 24.49% is ...
- 535
17
votes
8
answers
4k
views
Trying to lower my credit card APR; how to know what I should ask for?
I have a B of A Cash Rewards credit card that I want to have the APR lowered. It currently hovers at 20.49%. I've been a B of A customer since 2007, I've had the credit card since 2012. From their ...
- 319
16
votes
4
answers
8k
views
Why am I being declined for credit card offers?
I tried applying for a new credit card, as the only one I had strangely jumped from 2% to 35% APR unexpectedly, without any reason I could tell, and customer service was unhelpful. I plan to cut the ...
- 2,899
13
votes
5
answers
8k
views
Should I pay off mortgage or invest in CD?
I am confused about the mortgage rates in APR vs CD rates that I could invest in [US].
I have a mortgage loan that I got with 2.875 APR. I could pay that off or invest that money in a CD with rate of ...
- 273
11
votes
4
answers
4k
views
0 APR Promotional Offer For Credit Cards
I’m currently learning about personal finance and I just found out that there are some credit cards that will give zero interest rate for a certain period of time (10-20 months).
I know that to get a ...
- 115
8
votes
2
answers
301
views
0% intro APRs complicating payoff plans
So I'm in not-the-best™ position with about 15K in undesirable credit card debt (And another 5K in permanent no-interest deferred payment plans). I'm trying to calculate what the optimal payoff ...
- 115
7
votes
3
answers
4k
views
What happens after "3.9% APR Financing for 36 Months"?
I have recently seen many car dealers with ads that say "3.9% APR Financing for 36 Months" and similar. Supposing I get a 5-year auto loan, what happens after the 36 months? I can't find ...
- 2,899
7
votes
4
answers
3k
views
Can I get a late payment on my credit card if apr is 0% for the first 21 months?
Can I get a late payment on my credit card if APR is 0% for the first 21 months? (through a Chase Slate Edge intro offer)
(I've always paid on time but I am in a situation where I might need to avail ...
- 693
7
votes
4
answers
18k
views
Is there a way to convert from a monthly rate to annual?
This might seem like a silly question, but I'm trying to work out how much something will cost if I pay for it on my credit card instead of paying monthly to the company at their interest rate. The ...
- 213
6
votes
2
answers
1k
views
Does increasing loan term increase APR?
I am taking out a personal loan to consolidate debts from various sources into one payment at a lower APR.
The loan company lets me choose 24, 60, 72, etc. months to repay on the application. I can't ...
- 2,899
6
votes
2
answers
13k
views
How is interest calculated on PCP agreements?
in December 2018, I'll be at the end of my PCP agreement for my current car and I'm weighing up my options. I've never really paid attention to the details about my previous finance agreements - I ...
- 163
5
votes
2
answers
2k
views
Calculating pay off for credit card with multiple APRs
I have a credit card that is charging me two different APRs, one for cash withdrawal and one for purchases. I am trying to determine how much I need to pay monthly to zero the balance, but most online ...
- 630
4
votes
2
answers
408
views
Help on calculating credit card interest
Below is a summary of my current statement Apr 21 2019 - May 2019:
The APR is 25.24%
I had a promotional 0% APR till Apr 20.
This is it google drive link
I have tried my best to calculate the ...
- 41
4
votes
2
answers
382
views
Signing up for a credit card to pay tax debt - pitfalls of 0% APR for the first year?
I have a tax debt of ~$3000 and am trying to find the best method of paying it. I applied for a credit card that offers 0% APR for the first 12 months. As far as I can tell, this is a much better ...
- 191
4
votes
4
answers
20k
views
What is the difference between APR, IRR, and effective rate?
I've been working on constructing an Excel spreadsheet that will calculate an APR (for loans in the US). In researching which built-in formula to use, I've seen websites refer to the "effective rate,"...
- 285
4
votes
1
answer
310
views
How often to call Credit Card Customer Service for Rate Reduction
I've seen 6 months mentioned a lot, but in some of the information I've consumed I've heard that some people call their customer service as often as each month. I'm pretty sure they make notes on how ...
- 651
3
votes
4
answers
721
views
Can you switch credit cards annually to avoid interest if you have no outstanding balance?
I am aware of how balance transfers work, and that there are various things to consider with that.
However, I generally treat my credit card as a debit card, paying it off fully at the end of each ...
- 2,585
3
votes
3
answers
795
views
Calculating Future and Present value into mortgage comparisons
I'm looking to buy a home in the next 3 or 4 months. The bank I'm working with has 10 different mortgage rates, currently ranging from 3.5% to 4.625%, with points respectively ranging from 2.875 to -1....
- 473
3
votes
1
answer
169
views
Are ongoing credit card charges added to the revolving balance and interest calculations immediately following a carried balance
Say I have a credit card, and I carry a balance of $200 from my statement at the end of the month of June. Are all transactions from the month of July immediately added to the revolving balance and ...
- 33
3
votes
1
answer
651
views
Using the Rule of 72 to compute residual income?
Often I check an investment strategy's performance by summing the year-to-date realized gains/losses.
I take the sum of all closing(or market for unrealized) values CT, subtract the sum of all cost ...
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3
votes
1
answer
225
views
Formal Definition of APR
I have seen several conflicting sources on the internet about APR. Some say the effective rate is (1+APR/n)^n -1 while others say this formula is the APR since APR represents the rate over all ...
- 31
3
votes
1
answer
186
views
Effective Interest Rate from bifurcated interest rate
Here goes, this is the scope of my question: Say I want to take out a credit card, that has 0% interest for 12 months, when at the 13th month, whatever debt is taken out on the card will be subjected ...
- 31
2
votes
2
answers
2k
views
Is it ever worth it to refinance an auto loan for a higher APR?
I recently moved into a new place/city and am looking to free up some room in my monthly budget. For the first time in about 3-5 years, I shopped for new car insurance and then looked into an auto ...
- 145
2
votes
5
answers
413
views
Consolidate my debt? Higher APR, but what does that actually mean?
If I have a monthly payment of $804.54 and an APR of 29.8%, does that mean that, each month, 29.8% of my $804.54 goes to paying the creditor?
My situation...
I have 3 credit cards and am thinking ...
- 21
2
votes
2
answers
212
views
Balance transfer fee
I am getting my first credit card ever and I am trying to learn how it works.
I got through most of the documentation but I am trying to understand this:
0% Intro APR for 15 months from account ...
- 693
2
votes
3
answers
11k
views
What does APR mean I'm paying?
I've read every article and post on the internet and I'm still confused.
I'm getting a credit card with a 19.9% APR with no annual or monthly fees.
I read that APR is the annual rate for borrowing. ...
- 21
2
votes
4
answers
148
views
What are some rule of thumb criteria to choose loans?
When one wants to take on a loan, they can do so from multiple banks. There are also comparison websites that allow you to see various loan offers from each bank. Most of them use the annual ...
- 123
2
votes
1
answer
178
views
Converting interest rates
I have found a monthly interest rate, 0.72%
Now, I would like to convert this monthly rate to:
Equivalent annual nominal rate of interest payable half yearly, and
Equivalent annual nominal rate of ...
- 53
2
votes
1
answer
838
views
How to understand the calculation of interest for credit cards?
From Wikipedia
The general calculation formula most financial institutions use to
determine the amount of interest to be charged is APR/100 x ADB/365 x
number of days revolved. Take the annual ...
- 5,883
2
votes
3
answers
723
views
0 Percent Intro APR, is it a misnomer?
(Read the normal print for an amusing story, skip to the bolded text for more important info)
To begin, I'm a scallywag.
I saw that card offer in the mail and did some digging because I'm not used ...
- 31
2
votes
3
answers
2k
views
Does APR also depends on credit score?
I know that a good credit score means access to higher credit limits, but how the APR is affected? While I always pay off the whole balance on my credit card, but I am interested in lower APR, because ...
- 41
2
votes
2
answers
290
views
APR for a Loan Paid Off Monthly
A loan is issued for 12 months for 1000 and is paid back with monthly payments of $140 each month. Does this loan have an APR of 68%?
- 41
2
votes
1
answer
401
views
Difference between APR and APY [duplicate]
Possible Duplicate:
What is the difference between Interest Rate and APY?
Can you explain to me the difference between APR and APY and which one I should care about more? I know that comparing ...
- 3,527
2
votes
1
answer
105
views
What's the APR for this in combination with the Balloon Payment of 6525 USD?
I am trying to solve the following:
Finance Amount: 24.951,82 USD
Interest Rate: 2.29%
Residual Value: 6.525 USD
Number of Months: 60
Fee: 374.28
Years: 5
What's the APR for this in combination with ...
- 21
2
votes
2
answers
301
views
Car finance, APR rates and per week in adverts; help understanding them
Looking at a car advert [for a car I was considering buying in April 2008] but in the end I didn't - this was what the advert stated:
2005 TOYOTA COROLLA 1.4 VVTi 5 door hatchback £7195
From £38 ...
- 121
2
votes
1
answer
295
views
How to arrive at the fee-adjusted APR (accounting for balance transfer fee, but not inflation)?
I'm trying to figure out the fee-adjusted interest rate paid when incurring a balance transfer fee on a loan, not accounting for inflation.
If the APR is 4%, the loan 5000, the transfer 2% and you ...
- 123
1
vote
4
answers
6k
views
How to calculate Annual Percentage Rate of a loan with unequal periodic payments?
Let's say we borrow a loan of $1000. We pay back to bank $100 per month but for some stupid reason the last payment is smaller and equals $50. This is a common case in my country. How then the APR ...
- 163
1
vote
2
answers
397
views
0% APR first 12 months on new credit card. Can I exceed that 30% rule of thumb and not hurt my credit score?
I opened a credit card account about two months ago, hoping to start building credit. Fortunately, I was approved for a regular credit card, not a secured one. I was informed by the person at the bank ...
- 149
1
vote
2
answers
1k
views
Why does APR sometimes show as lower than the stated mortgage rate?
I see an offer for a 15 year fixed jumbo at 4.5% with a 4.622% APR while on the some advertisement it shows a 5/1 ARM jumbo at 3.875% with a 3.283% APR.
Why is one APR higher and the other lower?
- 1,823
1
vote
1
answer
99
views
What do the various types of APR mean on my credit card?
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 ...
- 681
1
vote
1
answer
157
views
Confusion with payment calculation for fixed payments on fixed interest loan
I'm trying to understand how to calculate the monthly payments on a fixed interest loan with a given term. I understand this can be done with the PMT excel function.
Whenever I see this explained ...
- 13
1
vote
1
answer
111
views
If APY factors compounding (while APR doesn't), shouldn't APY always be higher than APR?
So, from what I understand:
APR: rate advertised to borrowers (without compounding)
APY: rate advertised to lenders (with compounding)
So, for a loan with APR of 6%, that compounds monthly:
APY = (...
1
vote
2
answers
1k
views
Calculating Effective Annual Interest Rate & Annual Percentage Rate with fees (in R)
Problem
How to calculate Effective Annual Interest Rate (EAR) and Annual Percentage Rate (APR) with fees (in R) ?
I am interested in getting to know how much I am actually paying interest when fees ...
- 69
1
vote
1
answer
941
views
Why does the present value of a deposit decrease when the APR increases? [closed]
When calculating a down payment in excel, I noticed that by increasing my rate from 3.7% to 6.25%, the money I supposedly have to pay today decreases. Why is that?
Thanks a lot :)
- 11