Have you ever struggled to get to grips with your credit card? Whether you use it for business or family purchases a credit card is a great way to spread when you pay for something, but you need to understand how interest works if you are going to make the most of a card.
APR (Annual percentage rate) is a term used in a variety of ways throughout finance products and represents the standard way of showing the yearly cost of borrowing based on the situation of you being charged. For many cards, if you pay everything off each month, using a card will cost you no more, but does give you more time to pay. Once you want to spread your payments for something over a number of months you will start paying interest. Have a look at the infographic, below, to learn more about how interest works, what you are charged and when.
This information was collected by the HSBC Credit Cards team