APR
Cards & borrowingAnnual Percentage Rate, a measure of the cost of borrowing over a year, including interest and some fees.
Overview
APR helps you compare the cost of credit products on a like-for-like basis.
A lower APR usually means cheaper borrowing if you carry a balance.
Why it matters
- It affects the total cost of credit.
- It helps compare products fairly.
- High APRs can make debt more expensive.
FAQs
Is APR the same as the interest rate?
APR includes interest and some fees, so it is broader than the basic rate.
Does APR apply if I pay in full?
If you pay in full and on time, you may avoid interest on credit cards.
Related terms
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