When comparing credit cards, it’s useful to take note of the APR for each card. The APR, or annual percentage rate, is the way lenders describe the cost of borrowing money over a year. Understanding the APR can help you understand how much it could cost you to use the card, and it’s just one way to compare how much it will cost you to use a credit card.
Let’s say the APR on a card is 17% and you spend £1,000 on it, the interest and charges will mean that you are accruing £170 on top of your £1,000 debt. In the end, then, you will be paying back £1,170.