When you use a credit card, the Annual Percentage Rate (APR) is one of the most important terms to understand. The APR represents the cost of borrowing money, including interest and any fees, expressed as an annual rate. It’s a critical factor in determining how much you’ll pay for using credit if you don’t pay off your balance in full each month.

Different credit cards come with different APRs, and it’s important to shop around for the lowest rate, especially if you carry a balance. Some credit cards offer a promotional 0% APR for a limited time, but once that period ends, the regular APR kicks in.

Understanding APR is key to avoiding costly interest charges and managing credit effectively. But do you know what APR actually stands for? Let’s test your knowledge of this important credit card term.