What is APR?

APR stands for Annual Percentage Rate. It’s the yearly cost you pay for borrowing money. APR is expressed as a percentage that takes into account both interest rate and any additional fees. The higher the APR, the more expensive the loan.

How is APR Calculated?

The APR is calculated based on a number of factors, including late payment charges, the loan amount, the repayment schedule, and more. Here’s a tip: lenders are required to tell you their APR before you agree to borrow money from them, so make sure to compare APRs when deciding between loans.