What is APR on a credit card?

APR (Annual Percentage Rate) is the annual interest rate charged on carried credit card balances. If you carry a $1,000 balance on a card with 22% APR, you owe about $18 in interest that month (22% ÷ 12). The key is to pay your full statement balance monthly — when you do, you pay zero interest regardless of your APR. APR only costs you money when you carry a balance from month to month.