Question

1. What will your APR be after 12 months if you have a bad credit score:____ good credit score: ____

2. When will you be charged the highest APR?
3. Miguel uses his credit card and spends $102 in Mexico, how much fee will he be charged?
4. Leslie pulls out $60 from an ATM. What is the fee she will have to pay? _____ What is the APR rate? ____%

Answer 1

1. After 12 months, if you have a bad credit score, your APR will be 23.99% with a good credit score APR as 13.99%.

2. The highest APR will be charged when you make a late payment or a returned payment.

3. If Miguel uses his credit card and spends $102 in Mexico, the fee charged will be $0.50.

4. The fee for a cash advance when Leslie pulls out $60 from an ATM is $15.14. And the APR rate is 25.24%.

The Annual Percentage Rate (APR) describes the total yearly cost of borrowing.

The APR is expressed as a percentage of the principal loan amount.

1) APR for bad credit score = 23.99%

APR for good credit score = 13.99%

2) The highest APR = 29.99%

3) Spending $102 in Mexico

Fee charged = $0.50

4) Cash Advance = $60

Fee charge = $15.14 ($60 x 25.24%)

APR rate = 25.24%