---
title: "What is APR? | Benefit Systems"
description: "APR is the price of borrowing on a card account, expressed as an annual percentage rate."
source: "aus dem gebauten HTML abgeleitet"
---
# What is APR?

APR is the price of borrowing on a card account, expressed as an annual percentage rate.

Also called: Annual percentage rate, Interest rate.

## How it works #

Interest only starts when a balance survives past the interest-free period; until then the card is a free means of payment. Cash advances normally fall outside that grace period, with interest running from the day of withdrawal. The rate is set out in the card terms and can be changed with notice.

## Not to be confused with #

APR is not the same as an annual fee: every cardholder pays the fee, while interest is only paid by those who do not settle the bill in full.

## In German #

The German term is Sollzinssatz. [German version of this term](/de/glossar/sollzinssatz)

## Related terms #

- [Carrying a balance](/en/glossary/carrying-a-balance): Carrying a balance means leaving part of a card bill unpaid so that it rolls into the next month and accrues interest.
- [Cash advance](/en/glossary/cash-advance): A cash advance is withdrawing cash on a credit card, which counts as borrowing and therefore carries its own fees and interest rules.
- [Credit limit](/en/glossary/credit-limit): A credit limit is the maximum balance a card account may carry between statements.

## Articles that use this term #

- [What does carrying a balance actually cost you?](/en/knowledge/carrying-a-balance)
- [How much credit limit do you need?](/en/knowledge/credit-limit)
- [What’s the cheapest way to get cash abroad?](/en/knowledge/cash-abroad)