The APR (or Annual Percentage Rate) quoted for a credit card is one of the most important factors in choosing a credit card. In general terms, the lower the APR the better for you

In essence, the APR is the interest that the lender (e.g. MBNA, American Express, Cahoot, etc.) charges you for any debt which you don't repay straight away.

So, the lower the APR, the less interest you will need to repay, and the cheaper the credit card.

What is typical APR?

Typical APR, also referred to as illustrative APR, is the rate that the credit card company advertises, but is not necessarily the rate you will be offered.

The credit card company must quote an APR for you before you reach agreement, and this APR will depend on personal circumstances, credit rating, repayment term, and so on.

Credit card companies must, though, offer their typical APR at least 66% of the time.