APR vs. APY: Understanding interest rates
Understanding the difference between APR and APY can help you make smart money decisions.
Alice Lesperance has more than 10 years of journalism experience, and she is passionate about helping people at all stages of their credit card journeys take control of their personal finances. A newcomer to the world of personal finance and credit cards when she started at Bankrate in 2024, Alice has made it her mission to provide compassionate and accessible information for readers who may also be dipping their toes into the world of credit for the first time.
Her reporting and longform journalism can also be found in outlets like The Atlantic, Teen Vogue, Charlotte Magazine, and more.
Alice lives in Philadelphia with her wife and three furbabies. Outside of work, she loves playing video games, cooking, and listening to every kind of music under the sun.
Until she was 33, Alice carried a single credit card in her wallet: a starter card from her credit union that she applied for in college. Since learning more about credit cards, she’s created her own tailored rewards strategy that works for her and her lifestyle. Alice believes that everyone has their own unique approach to credit and what works for some or even most people may not work for you. “I don’t travel, I don’t have kids, and I don’t own a home. What works for me in terms of credit card rewards and perks looks a little different from a lot of credit card aficionados and experts in the industry – and that’s okay, You have to take your time to decide what is going to work best for you.”
Understanding the difference between APR and APY can help you make smart money decisions.
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