Question

Why is it important to compare the APR for credit cards?

to find the lowest payment
to find the lowest interest rate
to find the additional fees
to find the grace period

i need this now or else i wont graduate

Answer 1

It is important to find the lowest interest rate. With credit cards, interest rate and APR can be used interchangeably, since there are typically no fees other than interest that are charged for borrowing money on a credit card.

Answer 2

The correct answer is B. To find the lowest interest rate

Step-by-step explanation:

In finance, the Annual Percentage Rate or APR refers to the rate you are charged annually for "borrowing" money every time you pay for a service or product using credit. This rate is relevant for users of credit cards because the highest the APR the more money it cost to have a credit card and use it to pay for products and services. Due to this before getting a credit card it is important to compare the APR of different credit cards and in this way select the one that has the lowest interest rate.