Loans & credit
APR
Also known as: Annual Percentage Rate
The true yearly cost of a loan including interest plus fees, giving a fairer comparison than the rate alone.
APR bundles the interest rate together with fees like processing charges into one annual percentage.
It gives a more honest picture of a loan's real cost than the headline interest rate, which hides fees.
When comparing loans, compare APRs, not just the advertised interest rate.
For example
A loan at 11% interest with hefty fees might have an APR of 13%, making it costlier than a 12% loan with no fees.