APR stands for annual percentage rate. It's an estimate of how much you’ll pay to borrow money over a year, as a percentage of the money you borrow. The higher the APR is, the more expensive it'll be for you to borrow. This is useful when it comes to comparing credit cards.

The annual percentage rate includes the interest rate for making purchases on your credit card and standard fees, like application or account fees.

It doesn't account for the different interest rates for things like balance transfers, cash withdrawals and money transfers. APR also leaves out non-standard charges, like fees for late payments, going over your credit limit and foreign transactions.

These extras can add up. So when you're comparing credit cards, it's worth looking beyond the APR and checking the full list of fees too.

A variable APR is a rate that can change at any time. Most UK credit cards work this way.

This type of APR is linked to the Bank of England's base rate. When the base rate changes, your interest rate usually changes, too.

The Bank of England reviews the base rate roughly every six weeks. Sometimes it stays the same, and sometimes it changes. If it does, your APR could move with it.

Representative APR is the headline rate you see advertised. It's there to help you compare credit cards fairly.

At least 51% of people who are accepted will get this rate, or one that's lower. Note that this doesn't mean everyone in that 51% gets exactly the same deal.

On the other side of the coin, almost half of accepted customers may be offered a higher rate than the representative APR.

Representative APR is useful for comparing cards. But it isn't the rate you automatically get.

The rate you're actually offered when you apply for a credit card is based on your own situation, like your credit history and finances. This is called your personal APR. Your personal APR could be the same as the representative APR, or it could differ.

Even customers in that 51% still get a personal APR – it just won't be higher than the representative one.

Normally, you only see your personal APR after you apply. And that application can affect your credit score.

Some providers (including us) let you check your eligibilityopens in a new tab and see your personal APR before you apply, with no impact on your credit score. You’ll need to share a few details, and you’ll get a yes or no answer straight away.

34.9% APR representative variable. T&Cs apply.

Several factors can impact the APR on your credit card:

• Credit score – Usually, a better credit score will get you a lower APR, and if your score is on the lower side, your APR might be higher.
• Card type – Different cards come with different APRs. For example, a balance transfer card might offer 0% APR for a while, while cashback or reward cards may have higher APRs due to annual fees. Credit cards for rebuilding a poor credit history often have higher APRs.
• Lender policies – Each lender has their own approach and risk assessments, which can affect the APR they offer you.
• Promotional rates – Some cards offer a special, lower APR for an introductory period. After that period ends, the APR will usually go up to the regular rate.

Want a lower APR? Here's how you can help to boost your chances:

• Improve your credit score – Pay bills on time, keep credit card balances low and avoid opening too many new accounts all at once.
• Shop around – Different lenders offer different rates, so take the time to compare. You might find a better deal just by looking a bit further.
• Look for intro offers – Some credit cards offer 0% or low APR for purchases or balance transfers. Just make sure you know what the APR will be after the intro period ends.
• Tackle your debt-to-income ratio – Lenders want to see that you can manage monthly payments. Paying down debt can help you qualify for a better APR.

• APR shows how much borrowing on a credit card could cost over a year, so a higher APR means paying more.
• APR covers interest and some standard fees, but it doesn't include things like late payment charges, cash withdrawals or balance transfer fees.
• Most credit cards have a variable APR, which means your rate can change if the Bank of England base rate goes up or down.
• The representative APR you see in ads is there to help you compare cards, but it isn't always the rate you'll get.
• Your personal APR is based on your own circumstances, and it could be different to the representative APR.
• If you pay off your balance in full and on time, APR usually won't matter – but it's worth knowing in case you ever carry a balance.

APR is a helpful way to compare credit cards and get a sense of how much borrowing might cost. But it's only part of the picture.

If you usually pay off your balance in full and on time, APR may not matter much day to day. But it's good to know where you stand.

That's where QuickCheckopens in a new tab comes in. It's free, takes 60 seconds and lets you see if you're eligible for a Capital One card. You'll also see your personal APR upfront, with no impact on your credit score. And the APR we show you is the one you get – no surprises later.

34.9% APR representative variable. T&Cs apply.