Your credit card may have different APRs for purchases, balance transfers, and cash advances. The type of transaction determines which APR applies.
There are generally five types of APRs that may apply on your credit card:
Introductory APR: An introductory APR is a zero or low-interest rate in effect for a predetermined length of time, after you apply and are approved for a credit card. You can learn more about how long your introductory APR period is by reading your monthly statement.
Purchase APR: This type of APR will be applied when you make a purchase on your card and do not pay the full balance before your grace period (this is usually on or before your listed payment due date).
Cash Advance APR: When you make a cash withdrawal from your line of credit, a cash advance APR will be applied, usually immediately. This type of balance usually carries a higher APR than your purchase APR.
Balance Transfer APR: A balance transfer APR will be applied when you transfer a partial or full balance from another card.
Penalty APR: This type of APR typically applied after consecutive late or missed payments or for payments made past their listed due date. In some cases, this higher APR may be applied to current and future balances. Because of the risk of damage to your credit score, in addition to a higher interest rate, it is strongly recommended that you make on-time payments.