The cost of borrowing associated with balances carried on store-branded credit accounts offered in conjunction with a large retail corporation is a crucial factor for consumers. This figure, expressed as a yearly rate, represents the interest charged on outstanding debt. For instance, a purchase made using the card which is not paid off within the grace period will accrue interest at this specified percentage.
Understanding the magnitude of this percentage is vital for effective financial planning. A lower percentage translates to reduced interest charges over time, allowing cardholders to pay down their balances more quickly. Historically, this rate has fluctuated based on market conditions and the creditworthiness of the applicant. Competition among financial institutions can also influence the offered percentage.