 TITLE: Personal Loan Interest Rates and APRs: What’s the Difference? CONTENT: APR vs. Interest Rate on Revolving Accounts\n-------------------------------------------\nWith revolving credit accounts such as credit cards, which let you borrow against a specific spending limit and make variable monthly payments, APR and interest rate are the same thing. The annual fees charged on some credit cards are not reflected in their APRs.\nWhen comparing credit card APRs, keep in mind that many cards have several APRs, each of which apply to a different type of transaction. A low (or even 0%) promotional rate might apply to balance transfers added to the account when it was opened. The APR for purchases applies to ordinary charges made with the card. A higher rate typically applies for cash advances.\nHaving three interest rates apply to various portions of your monthly balance can be bewildering, and differing rules for applying payment to those partial balances can add to the confusion. Some cards apply payments to the highest-interest portion of your balance first, for instance, while others don't apply payments toward cash advances until all other partial balances are paid off.\nYou can use credit card APRs to compare the costs of using credit cards, just as you do with personal loans, but in practice, it can be a little more challenging. END