The interest rate on purchases is the rate that you will be charged for each purchase you make on your credit card. Essentially the lower the interest rate the less interest you have to pay, however if you make use of the interest free period and pay off your balance in this time you will not be charged interest.
Usually a financial institution will charge one interest rate on purchases and one interest rate for cash advances (withdrawals) and this rate is normally a lot more.
Interest rates will be different between financial institutions, so it pays to compare credit cards online to find a card that offers the lowest rates.
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