Glossary - annual percentage rate (APR)

annual percentage rate (APR)

The interest rate charged to the borrower, excluding expenses such as account opening and account keeping fees. The APR is the basic cost of your credit as a percentage of the total loan amount. Please note that even one credit card will have more than one APR – one for purchases, one for cash advances and one that is charged if you make late payments. A rate that includes all fees is known as a comparison rate.

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Last updated: 26 Feb 2016