The annual percentage rate (APR) represents how much money your financial institution charges you on your credit card balance or loan, and is expressed as an overall percentage of your balance.  For example, if your loan has an APR of ten percent, you will pay $10 annually for every hundred dollars you have in an outstanding balance.

Usually, credit cards have higher APRs for cash advances than they do for regular purchases or balance transfers.  Also, some companies appeal to consumers with credit card offers that feature low introductory APRs; for example, zero percent APR on balance transfers (or purchases) for six months.