The cost of borrowing associated with the retailer’s branded credit products is a critical factor for consumers. This cost, expressed as a percentage, represents the annual charge levied on outstanding balances carried on those cards. For instance, if a cardholder makes purchases but does not pay the full amount by the due date, this percentage determines the amount of interest accrued on the remaining balance.
This factor significantly influences the total cost of using the credit product and affects the user’s ability to manage their finances effectively. Understanding this rate is essential for responsible credit utilization. Historically, these rates have fluctuated based on prevailing economic conditions and monetary policy set by central banks, reflecting broader trends in the credit market.
