shopping for a credit card
Annual Percentage Rate or "APR"
It helps to understand key credit card terms. APR is the annual rate of interest you pay on the outstanding balance. The lower it is, the less you'll pay to borrow money. APR can be "fixed" or "variable". Fixed rates stay the same, while variable rates change based on an index. Which of these is also true?
The amount you pay for interest gets higher over time.
If you miss a payment, this won't affect your interest rate.
Interest on different types of transactions may vary.
"C" is correct. For example, the APR on cash advances is usually higher than on purchases. If you miss a payment, your APR may go up. Also: The APR advised in promotions is given to borrowers with strong credit histories. If you apply and don't meet this condition, you may be charged a higher APR.