Today’s reader mailbag discusses credit cards, from getting your maximum cashback value and the basics of annual percentage rate.
1. APR vs. APY
2. Getting maximum Amazon rewards value
3. What are finance charges on a credit card?
4. Are Visa/Mastercard debit cards safe?
5. Which credit card debt should I tackle first?
6. How to destroy credit cards
Q1: APR vs. APY
What is the difference between APR and APY on a credit card? I used to think they were the same thing but I saw a CNBC segment where they were saying that they weren’t. Tried to look it up but all of the articles didn’t make much sense.
Credit cards typically quote you the APR rate on the card. The APR is the annual cost of borrowing money. It includes the interest charged as well as extra fees. That’s why, sometimes, you’ll find that the APR is higher than the interest rate — the APR is the interest rate plus fees. APR … Read More