# credit cards.. apr

I might sound stupid to some of you… but when credit cards market to the public and state… apr. for example… chase freedom card as 14.99% APR… Does that mean (14.99)^(1/12) … is the monthly apr… and the 14.99% is the compound effective annual yield… vs… the bond equivalent yield… which is mainly nominal? what is a balance transfer apr and a cash advance apr?

APR is the annual percentage rate. you need to calculate the effective annual rate to see the compounding effect. for credit cards, they are usually compounded daily. so for 14.99%, (1+14.99/365)^365-1 and you will get the effective annual yield. same thing for cash advance.

SO APR is essence is the same this as BEY right? (bond equivalent y)

> > what is a balance transfer apr and a cash advance > apr? Balance transfer APR is a special lower rate (usually) offered for you to transfer your debt (usually lower interest than you pay) - usually a good deal to do, but 0% APR is the best if you are looking to transfer, just make sure you pay off the debt or transfer back within the 0%APR terms. Cash advance APR is usually a really high interest amount to use your line of credit to obtain cash - usually not worth the super high APR fees.