APR - Annual Percentage Rate. The yearly cost of finance.
Annual percentage rate means the total cost of the finance to the consumer on the amount of the credit granted, this is usually expressed as a percentage. Whether it be a mortgage, a loan or a credit card the APR is the total cost of the finance borrowed. The higher the APR the higher the repayments will work out to be.
APR Example - Low Credit Secured Loan UK
The repayments on any loan are calculated by taking into account such things as, the size of the loan, the length of term the loan will run for, the cost of arranging the loan, any security offered by the borrower and the credit status of the borrower. Once everything has been taken into account a consumer will be presented with a payment plan which will be broken down into monthly repayments. The lower the APR on a UK secured loan the better because it means less interest, which ultimately means that the loan would have cost the consumer less to borrow.
APR Information
All finance lenders should show and make it clear what their APR is on their finance products. This should help consumers decide which product and what lender to use. It is easy to surf the internet for finance and you can compare products as well as APR's. Always be aware what your monthly payments will be and ensure you will be able to make those repayments before signing any agreements. The lower the APR the lower the monthly payments will be.