How are credit card APRs calculated?

I have had the Halifax platinum credit card on 0% for the last few months and have transferred about 6k to it and haven't paid any interest so far and wont do until the summer when it reverts to their standard rate of about

13.9% APR. I think you may be asked to pay higher interest if your credit score is bad. Also the capital one card gave me a higher rate a couple of years ago because I was only 20 and so was in a high risk group.

In message , Jonathan Bryce writes

It is that rate of interest which, when applied to a discounted cash flow made up of all the payments made in a credit agreement would produce a Net Present Value equal to the amount lent.

Yes.

no

No.

The calculation assume that you borrow some dosh and then make the minimum monthly payment that the lender will allow, typically 5% or 3% of the balance outstanding, and then keep making those payment until the debt is repaid. For the first months, during the offer period, those payments directly reduce the debt but thereafter interest will be added, thereby increasing the debt and lengthening the time it will take to repay. The longer you take to repay then the higher the APR. But if you repaid the loan in equal instalments over a shorter period then the APR would be lower and possibly more like the 'typical' apr.

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