What Does APR Mean on a Credit Card?

If you’re searching for a credit card, you might have come across the term Annual Percentage Rate (APR).
Credit card jargon can be confusing, but it doesn’t need to be. The thimbl guide to understanding APR explores several frequently asked questions, including:

• What is APR?
• How is APR calculated?
• What is Representative APR?
• What’s a good APR on a credit card?
• How does your credit score affect the APR you’re offered?

What is APR?

APR is the yearly cost of borrowing credit and is displayed as a percentage.
Understanding APRs can help you compare the cost of borrowing from one credit card to another, which gives you the best chance of finding a good deal.

What’s included in an APR?

The APR includes the credit card interest rate and any standard fees, such as an annual account fee.
Both the interest rate and any applicable standard fees must be made clear to you before you sign any credit agreement.

Interest rate + standard fee(s) = APR.

Interest is charged on your outstanding credit card balance and is added to your monthly repayments. If you clear the balance of your credit card in full each month, you will not be charged interest.

What isn’t included in the APR?

Additional fees are not included in the APR.

Examples of possible additional fees could include:

• Late repayment fees.
• Foreign transaction fees.
• Cash advance fees.

Any additional fees associated with your credit card will be listed in the terms and conditions of your credit agreement.

What is Representative APR?

Representative APR is the rate that at least 51% of successful applicants will be offered for that particular credit product. You may be offered a rate that is higher or lower than the Representative APR.

What’s a good APR on a credit card?

What’s considered a ‘good’ APR will vary from person to person and will be based on their financial circumstances.
In general, a good APR could be one that’s below the national average. As of June 2025, the average credit card APR in the UK is 35.61%; however, it’s important to understand that this will not be a rate that’s available to everyone.

A borrower’s credit score influences the interest rate they’re offered, and the interest rate makes up the APR. Therefore, your credit score will directly affect the range of APRs available to you.

The APR could also vary depending on the type of credit card. For example, credit cards for bad credit, known as credit builder credit cards, could come with a higher APR.

How to find the best APR for a credit card

Shopping around and comparing the APRs of different credit cards could help you find an affordable borrowing option.
Before you start your search, make a list of everything you want to get out of your new credit card. This could include key features such as being able to make a balance transfer or the credit limit you could be offered.
A credit broker could help you compare and search for a suitable credit card with an affordable APR.

How is the interest rate decided?

The interest rate you’re offered will be based on your creditworthiness, affordability, and credit score.
If you have a history of bad credit, you could find that, if successful, you’re offered a credit card with a higher rate of interest.

Will improving my credit score give me access to better interest rates?

If you need to apply for credit, having a good credit score could introduce you to a wider range of options and more desirable rates of interest.
No matter how bad your credit score, you can start working towards a healthier credit position today by making sure you pay your bills and any existing credit commitments on time each month, without missing any payments. This is the most important factor in what’s influencing your credit score.
We’ve included some tips below that you might find useful.

• Check your credit report for errors. If you spot any outdated or incorrect information, let the provider or your credit reference agency know as soon as possible so that it can be investigated and amended.


• Have you registered to vote? Simply being registered under your current home address will make it easier for potential lenders to verify your personal information, which in turn could have a positive impact on your credit score.


• Financial association can’t always be avoided, but if you’re hoping to improve your credit score, you should be mindful of who you share credit and bank accounts with. For example, if your partner has bad credit and you have a joint account with them, your credit score could suffer.

Introducing the thimbl Credit Builder Credit Card

Poor credit score?
The thimbl Credit Builder Credit Card could help you improve your credit score.

Use your thimbl Credit Builder Credit Card to make an affordable and manageable purchase and then make at least the minimum repayment amount due on the balance each month. Paying more than the minimum amount will reduce the interest, and if you clear the balance in full, you won’t be charged any interest at all.

Your repayment activity will be sent to the CRAs, and consistent positive use could improve your credit score.
A credit builder credit card could be most effective when combined with other credit-building techniques, such as those listed in the section above.

What’s the Representative APR on a thimbl Credit Builder Credit Card?

thimbl advertises a 48.9% APR Representative (variable), subject to affordability.
Remember, at least 51% of approved customers will be offered this rate or lower.

Am I eligible for a thimbl Credit Builder Credit Card?

You can check your eligibility for a thimbl Credit Builder Credit Card if you:

• Are between the ages of 18 and 70;
• Are a UK resident with at least 1 year's UK address history;
• Are employed, with a monthly net income of at least £800; 
• Have an active credit account that has been open for a minimum of 12 months; and 
• Do not already hold a Zable credit card.* 

Any credit obtained upon successful application will be provided by Lendable Ltd. 
Lendable Ltd is unable to consider applications from anyone who has declared bankruptcy or is in an Individual Voluntary Arrangement (IVA).

Find out if you’ll be accepted before you apply for your thimbl. Credit Card

• For all credit levels, from poor to excellent
• Checking won’t affect your credit rating
• 48.9% APR Representative (variable)

Check my eligibility

Why thimbl?

• If approved, you could start using your virtual thimbl Credit Builder Credit Card the same day, subject to further checks.


• Check your eligibility in just 90 seconds with no impact to your credit score.*


• No foreign transaction fees for overseas spending.**


• We’re rated ‘excellent’ with over 4,500 positive customer reviews.


• As of July 2025, we’ve said yes to over 150,000 customers!

What happens if I can’t afford to pay off my credit card?

If you’re finding it difficult to make the minimum repayment amount on your credit card each month, you should take a step back and avoid using it to make any further transactions. It’s a good idea to make your provider aware of the situation, so they can help you get back on track.

Free money and debt management advice can be accessed through StepChange, MoneyHelper, Citizens Advice, and National Debtline.

*If our eligibility check reveals that you’ve been pre-approved for a thimbl Credit Builder Credit Card and you choose to make a full application, a creditworthiness assessment will be carried out by Zable. This will consist of a hard search and a further check powered by Open Banking. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period could have a negative impact on your credit score. Zable is a trading style of Lendable Ltd, and any credit obtained upon successful application will be provided by Lendable Ltd. 
Please note that pre-approval does not guarantee acceptance.

** You can find a full list of countries where you are unable to use your thimbl credit card here.