APR stands for Annual Percentage Rate and refers to the yearly interest rate youll pay if you carry a balance on your credit card. It includes the interest rate that applies to your account plus other fees related to that account. Credit card companies take your credit score into account when setting your APR, with a higher credit score generally translating to a lower interest rate. Credit cards often have a variable APR, meaning your rate can go up or down over time. Variable APRs are tied to an underlying index, such as the federal prime rate. Credit card users should be aware that credit cards often have a number of APRs. For example, you may have one APR for purchases, a different APR for balance transfers, and another for cash advances. As a general rule, credit card companies tend to charge a higher APR for cash advances because there’s no grace period, meaning the interest begins accruing as soon as you withdraw the cash.