The Ramsey credit card's APR combines the annual interest rate with standard fees, providing a comprehensive measure of the total borrowing cost over a year, excluding additional charges.
The APR for the Ramsey credit card is determined by combining the annual interest rate with standard fees applicable to cardholders. This comprehensive metric reflects the total cost of borrowing money over a year.
For instance, if the annual interest rate is 20%, this percentage is incorporated into the APR calculation. Additionally, standard fees, such as the annual fee, contribute to the overall APR. It's important to note that other fees and charges, such as those for missed repayments and cash withdrawals, are not factored into the APR for this credit card.
Therefore, the APR serves as a useful tool for consumers to assess the true cost of utilizing the Ramsey credit card over a one-year period, considering both interest and standard fees.