Annual percentage rate: the yearly cost of borrowing, shown as a percentage. It's the borrowing twin of APY. The average rate on cards that carried a balance was about 22% in August 2026. At 24%, a $1,000 balance carried for a year costs roughly $240 in interest, charged a bit each day. Loans with fees fold those fees into APR, which is why APR is the number to compare across lenders.