Can someone explain APR in laymans terms
#1
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Can someone explain APR in laymans terms
What I want to know is
Is this good or bad ?
93.4% APR over 9 months
Is this good or bad ?
93.4% APR over 9 months
#7
APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR takes into account not just the interest on the loan but also other charges you have to pay, for example, any arrangement fee.
So the APR is higher than the interest rate, but may be the same if there are no charges. From the first direct web site:
10 year fixed rate offset Mortgage
5.19% for 10 years, reverting to our standard variable rate for the remaining term, currently 5.75%.
(offset Mortgage arrangement fee - £299 / offset Mortgage fixed booking fee - £395)
The overall cost for comparison is 5.6% APR.
You see the APR value includes the £299 arrangement fee and the £395 booking fee. The interest is at 5.19%
So the APR is higher than the interest rate, but may be the same if there are no charges. From the first direct web site:
10 year fixed rate offset Mortgage
5.19% for 10 years, reverting to our standard variable rate for the remaining term, currently 5.75%.
(offset Mortgage arrangement fee - £299 / offset Mortgage fixed booking fee - £395)
The overall cost for comparison is 5.6% APR.
You see the APR value includes the £299 arrangement fee and the £395 booking fee. The interest is at 5.19%
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Originally Posted by MattW
The APR takes into account not just the interest on the loan but also other charges you have to pay, for example, any arrangement fee.
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Legal loan sharks with a shiney website........
http://www.providentpersonalcredit.com//
£400 borrowed over 23 weeks = £25.60 x 23 = £588.80
497.4% APR..........
http://www.providentpersonalcredit.com//
£400 borrowed over 23 weeks = £25.60 x 23 = £588.80
497.4% APR..........
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Originally Posted by Reffro
Legal loan sharks with a shiney website........
http://www.providentpersonalcredit.com//
£400 borrowed over 23 weeks = £25.60 x 23 = £588.80
497.4% APR..........
http://www.providentpersonalcredit.com//
£400 borrowed over 23 weeks = £25.60 x 23 = £588.80
497.4% APR..........
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ReallyReallyGoodMeat
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21 September 2015 11:34 AM