The Lifecycle of an APR
The APR on a credit card is rarely static. Most credit agreements have a lifecycle that moves through different types of rates depending on time and your behaviour as a borrower.
1. Introductory or Promotional APR
This is a special low rate offered to attract new customers. The most common example is a 0% APR on balance transfers or purchases for a set period (e.g., 18 months). During this time, you pay zero interest on the balance.
2. Standard APR
This is the permanent, ongoing rate that applies once the promotional period expires. If you have a 0% card for 18 months, on month 19 the rate will jump to the standard APR (typically between 19.9% and 29.9%). This is why it is critical to clear your balance before the promotional period ends.
3. Penalty APR
If you miss a minimum payment, pay late, or exceed your credit limit, the lender may revoke your promotional rate or standard rate and apply a Penalty APR. This is a punitive rate that can be significantly higher (often 29.99% or more) and may apply permanently once triggered.
Typical APRs by Product Type
APRs vary wildly depending on the type of product and your credit score. Here is what typical UK APRs look like in 2026:
| Product Type | Typical APR Range |
|---|---|
| Standard Credit Card | 19.9% - 29.9% |
| Credit Builder Card (Bad Credit) | 34.9% - 59.9% |
| Personal Loan (£7,500+) | 5.9% - 9.9% |
| Car Finance (PCP) | 7.9% - 12.9% |
| Mortgage (APRC) | 4.2% - 6.5% |
Mortgage APRC Explained
For mortgages, APR is known as APRC (Annual Percentage Rate of Charge). It works the same way but is calculated over the entire lifetime of the mortgage (e.g., 25 years). It assumes you stay with the same lender and roll onto their Standard Variable Rate (SVR) after your initial fixed deal ends.
Because very few people actually stay on the SVR for 20 years (most remortgage to a new fixed deal), the APRC is often much higher than the initial interest rate you pay in the first few years.