When you have a balance owing on your credit card, one question that pops up in your head might be, “What is the APR on a credit card?” The APR is basically the annual cost of borrowing funds via your card. In layman’s terms, the APR meaning is simply a tool through which one can understand how much interest one can be charged when they cannot clear the balance on their credit card. What does APR mean? APR stands for Annual Percentage Rate.