Significance of APR
APR is the rate of interest that will be charged by the credit card provider on the total amount that you owe them.The interest is calculated on the total net amount you actually owe them.The credit card statements which are sent to the credit card holders monthly generally will have the payment due date, the net amount due, the minimum amount due which is the interest calculated for the net amount due, and other details.So, depending on availability of cash and your financial situation, you can either choose to pay the whole net amount due or pay just the minimum amount due to the credit card provider.
The advantage of making the full amount payment means that you don’t have to pay the interests in the successive months.If you are not paying the net amount due and just pay the minimum amount due, you will have to pay the interest the successive months as well.You can also opt to pay more than the minimal amount due and less than the net amount due.In that case, the interest will be calculated based on the amount you owe the credit card provider after deduction of this payment in the successive months.