Annual Percentage Rate, or APR, is used to describe the cost of borrowed money, whether this is from loans, overdrafts or buying on credit. APR will vary from lender to lender, so it is important to compare rates from different lenders.
APR allows you to compare different deals and work out the true cost of a loan. APR details will include features like interest rate, how to repay the loan, the length of the loan, details on instalment repayments and any set up fees or charges.
Always make sure you are familiar with all of these APR details, as sometimes a loan with a higher APR but a cheaper set up cost will be better for you than the cheapest possible APR but a high set up cost or penalty fines.
For further information and an explanation of how interest is charged, follow this link.
Compare rates for various types of borrowing using major credit card providers, banks and loan companies at the following links:
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