{"id":47950,"date":"2023-11-09T09:29:47","date_gmt":"2023-11-09T17:29:47","guid":{"rendered":"https:\/\/financer.com\/?p=47950"},"modified":"2023-12-26T08:07:47","modified_gmt":"2023-12-26T16:07:47","slug":"what-is-apr","status":"publish","type":"wiki","link":"https:\/\/financer.com\/loans\/articles\/what-is-apr\/","title":{"rendered":"Annual Percentage Rate (APR): What is it?"},"content":{"rendered":"\n
At its core, Annual Percentage Rate, or APR, represents the annualized cost of borrowing money<\/strong>, including interest and other charges. <\/p>\n\n\n\n It’s expressed as a percentage and gives you a more comprehensive view of what you’ll actually pay on top of the borrowed amount over the course of a year.<\/p>\n\n\n APR Stands for Annual Percentage Rate:<\/strong> It’s the annual rate charged for borrowing money.<\/p>\n<\/li>\n More Than Just Interest:<\/strong> APR includes fees and other costs, giving a more complete picture of the true cost of a loan.<\/p>\n<\/li>\n Comparison Tool:<\/strong> Useful for comparing loan products, but ensure you’re comparing apples to apples.<\/p>\n<\/li>\n Variable vs. Fixed APR:<\/strong> Know if your APR can change over time (variable) or stays the same (fixed).<\/p>\n<\/li>\n Credit Cards:<\/strong> With credit cards, APR is often different for purchases, cash advances, and balance transfers.<\/p>\n<\/li>\n Introductory APR:<\/strong> Be cautious of low introductory rates. Know when they end and what the regular APR will be.<\/p>\n<\/li>\n Impact on Payments:<\/strong> Lower APR means lower cost of borrowing, but monthly payment also depends on loan term and amount.<\/p>\n<\/li>\n APR vs. APY:<\/strong> APY (Annual Percentage Yield) includes the effect of compounding, typically used for savings accounts.<\/p>\n<\/li>\n<\/ol>\n When it comes to understanding the cost of borrowing money, few terms are as crucial yet as frequently misunderstood as APR. <\/p>\n\n\n\n As a personal finance expert, I’ve seen countless individuals make financial decisions without fully grasping what APR really means and how it impacts their wallets. <\/p>\n\n\nQuick Summary: <\/h3>
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