As You Will See From This Agreement, There Are Different APRs Applied Based on How the Credit Card is Used. Which Transaction Type Has the Highest APR?

As You Will See From This Agreement, There Are Different APRs Applied Based on How the Credit Card is Used. Which Transaction Type Has the Highest APR?

a). A.P.R. triggered by a late payment

b). A.P.R. applied to a Balance Transfer

c). A.P.R. applied on Purchases made during the Introductory Period

d). A.P.R. applied to a Cash Advance

The correct answer is option a. APR triggered by a late payment. This transaction type incurs the highest A.P.R. Late payments or delayed transactions lead to the imposition of a maximum percentage change ratio as a consequence. This reflects a common practice where higher interest rates are applied for overdue payments. Therefore, option (a) corresponds to the transaction type with the highest A.P.R. as outlined in the agreement.

What Does APR Mean?

APR, or Annual Percentage Rate, represents the yearly interest charged on loans or earned from investments. It includes fees and costs, offering consumers a clear comparison among financial products. Lenders must disclose APR before agreements are signed, ensuring transparency. It's crucial for borrowers, indicating the actual annual cost of funds over a loan term or income from an investment.