Store credit cards have a higher Average Percentage Rate (APR) than standard credit cards. You might want to consider how much you’ll owe to the retail store with a 20% interest rate.
About Interest Rates:
An interest rate is the rate at which interest is paid by borrowers for the use of money that they borrow from lenders. Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit.
Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods like for a month or a day. Different interest rates exist for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. For example, a company borrows capital from a bank to buy new assets for its business, and in return the lender receives rights on the new assets as collateral and interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. A commercial bank can usually borrow at much lower interest rates from the central bank than the rate at which companies can borrow from the commercial bank.