apr definition uk
The annual percentage rate, or APR, is the interest rate charged on the amount borrowed. It reflects the annual cost of borrowing money. APR makes it easier to compare different loans and credit cards, because you can easily see which loan/credit card would be cheaper. The basic definition of an APR: It's an annual percentage rate of interest a credit card holder will be charged on all or a portion of the balance if the full amount isn't paid on or before the due date. Definition. Annual Percentage Rate. The yearly cost of a loan, including interest, insurance, and the origination fee (points), expressed as a percentage. Often applied to mortgages, credit cards, and automobile financing. Definition. Annual Percentage Rate. The yearly cost of a loan, including interest, insurance, and the origination fee (points), expressed as a percentage. Often applied to mortgages, credit cards, and automobile financing. For more information, see: Difference Between Interest Rate and APR. DEFINITION of 'Annual Percentage Rate-APR'. The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction. DEFINITION of 'Annual Percentage Rate-APR'. The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction. Next Up. The basic definition of an APR: It's an annual percentage rate of interest a credit card holder will be charged on all or a portion of the balance if the full amount isn't paid on or before the due date. Beyond that, greater complexities lie. Here's a summary of what you need to know: The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction. The APR rate of a loan is a very useful number because it helps you compare the cost of different loans. Usually, the higher the APR on a loan, the more you'll have to pay (assuming that all other things are equal). The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan.
APR is the interest rate charged on the amount borrowed.