Official APR examples
All credit cards
There are regulations governing how APRs must be displayed, and below we have included credit card companies' official examples of how their interest rates work (see loan APR examples).
What is a representative APR on a credit card ?
APR stands for annual percentage rate, and it's the official rate used for borrowing. When it's calculated it has to include:
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The cost of the borrowing – so the amount of interest charged
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Plus any associated fees that are automatically included, such as a monthly card fee
An APR is therefore meant to give you the overall equivalent cost of a debt, which you can then use to compare against other credit cards (and loans). It must be displayed by a lender before any agreement is signed. The fact it includes charges sometimes means the APR can be a bit confusing. For example, an interest rate could be 22.2% a year but the APR is 27.3%, as the impact of a £25 annual fee adds the equivalent to another 5.1% interest. Yet this is useful as it allows a true comparison.
Only 51% need to get the representative APR, the rest could pay much more
The term 'representative APR' or 'rep APR' is widely used on credit card (and loan) adverts, yet this means only 51% of successful applicants must be given the advertised interest rate. The rest will most likely get a higher rate.
As an example, if a loan is advertised as being 2.8% APR representative, this means 51% of accepted applicants have to get 2.8%, and up to 49% could be offered a different rate, which is often much higher. The same principle applies for credit cards, though this uses the interest rate for purchases, which can be different for other uses, such as balance transfers or cash withdrawals. Of course, some people will be rejected outright for the card (or loan) too.
For more information, we've a full Interest rates guide which into much more detail.
What is the average credit card rep APR?
There's no simple answer to this question because rep APR can vary significantly. Typically, credit cards will have a rep APR of somewhere between 20% and 40%, though it's not uncommon to find one with a rep APR outside that range.
What is a good APR for a credit card?
Because the rep APR is the amount of interest you pay over a year, the best rep APR is 0%. Many cards come with an introductory offer, where you get a certain number of months at 0% interest but when that time comes to an end, the interest rate usually jumps up to the typical 20% to 40% range.
Of course, the best way to use a card which charges any amount of interest is to pay it off in full (either by the end of the 0% introductory period or, if there isn't one, by the end of the month). That way, you avoid paying interest, making the rep APR redundant.
CREDIT CARD | REPRESENTATIVE APR |
|---|---|
American Express (Amex) | |
Cashback | If you spend £1,200 at an annual interest rate of 29.7% (variable) with a £25 annual fee, your representative APR will be 35.3% APR (variable). |
Cashback Everyday | If you spend £1,200 at an annual interest rate of 29.7% (variable), your representative APR will be 29.7% APR (variable). |
Nectar | If you spend £1,200 at an annual interest rate of 29.7% (variable) with a £30 annual fee, your representative APR will be 36.5% APR (variable). |
Preferred Rewards Gold | If you spend £1,200 at an annual interest rate of 29.7% (variable) with a £195 annual fee, your representative APR will be 86.8% APR (variable). |
Rewards | If you spend £1,200 at an annual interest rate of 29.7% (variable), your representative APR will be 29.7% APR (variable). |
Asda Money | |
Select Credit Card | If you spend £1,200 at an annual interest rate of 34.9% (variable), your representative APR will be 34.9% APR (variable). |
Barclaycard | |
Amazon | If you spend £1,200 at an annual interest rate of 28.9% (variable), your representative APR will be 28.9% APR (variable). |
Platinum | If you spend £1,200 at an annual interest rate of 24.9% (variable), your representative APR will be 24.9% APR (variable). |
Rewards | If you spend £1,200 at an annual interest rate of 28.9% (variable) your representative APR will be 28.9% APR (variable). |
Avios | If you spend £1,200 at an annual interest rate of 29.9% (variable) your representative APR will be 29.9% APR (variable). |
Avios Plus | If you spend £1,200 at an annual interest rate of 29.9% (variable) your representative APR will be 80.1% APR (variable). |
Capital One | |
Balance Transfer (for poorer credit scorers) | If you spend £1,200 at an annual interest rate of 34.94% (variable) your representative APR will be 34.9% APR (variable). |
Complete | If you spend £1,200 at an annual interest rate of 29.94% (variable), your representative APR will be 29.9% APR (variable). |
Fluid | |
Credit Card | If you spend £1,200 at an annual interest rate of 34.94% (variable) your representative APR will be 34.9% APR (variable). |
HSBC | |
Purchase Plus / Balance Transfer Credit Card | If you spend £1,200 at an annual interest rate of 24.9% (variable) your representative APR will be 24.9% APR (variable). |
Lloyds Bank | |
Dual Transfer and Purchase / Balance Transfer Card | If you spend £1,200 at an annual interest rate of 26.94% (variable) your representative APR will be 26.9% APR (variable). |
M&S Bank | |
M&S Purchase Plus / Transfer Plus | If you spend £1,200 at an annual interest rate of 24.9% (variable), your representative APR will be 24.9% APR (variable). |
MBNA | |
Long Balance Transfer Card | If you spend £1,200 at an annual interest rate of 24.94% (variable), your representative APR will be 24.9% APR (variable) |
Dual Offer Card | If you spend £1,200 at an annual interest rate of 26.94% (variable), your representative APR will be 26.9% APR (variable) |
Credit Card | If you spend £1,200 at an annual interest rate of 14.94% (variable), your representative APR will be 14.9% APR (variable) |
Natwest | |
Travel Reward Credit Card | If you spend £1,200 at an annual interest rate of 27.9% (variable) your representative APR will be 27.9% APR (variable). |
Post Office | |
Classic Card | If you spend £1,200 at an annual interest rate of 34.94% (variable), your representative APR will be 34.9% APR (variable). |
Santander | |
Edge Credit Card | If you spend £1,200 at an annual interest rate of 29.9% (variable) your representative APR will be 37.8% APR (variable). |
Tesco Bank | |
Foundation Credit Card | If you spend £1,200 at an annual interest rate of 29.9% (variable) your representative APR will be 29.9% APR (variable). |
Balance Transfer / Purchases / Balance Transfer and Purchases / All Round Credit Card | If you spend £1,200 at an annual interest rate of 24.9% (variable) your representative APR will be 24.9% APR (variable). |
TSB | |
Purchase Credit Card | If you spend £1,200 at an annual interest rate of 24.95% (variable) your representative APR will be 24.9% APR (variable). |
Virgin Money | |
Virgin Atlantic Reward Credit Card | If you spend £1,200 at an annual interest rate of 26.9% (variable) your representative APR will be 26.9% APR (variable). |
Virgin Atlantic Reward+ Credit Card | If you spend £1,200 at an annual interest rate of 26.9% (variable) with a £160 annual fee, your representative APR will be 69.7% APR (variable). |
Balance Transfer Credit Card / Travel Credit Card | If you spend £1,200 at an annual interest rate of 24.9% (variable) your representative APR will be 24.9% APR (variable). |
All Round Credit Card - poorer credit scorers / Everyday Cashback | If you spend £1,200 at an annual interest rate of 29.9% (variable) your representative APR will be 29.9% APR (variable). |
Vanquis | |
Balance Transfer Credit Card | If you spend £1,200 at an annual interest rate of 32.9% (variable), your representative APR will be 32.9% APR (variable). |
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