When you look at a loan or credit card offer, you’ll see the term “APR,” or annual percentage rate, popping up all over the place. What is APR, exactly, and why is it important when taking out a loan or choosing a credit card?
This guide will tell you everything you need to know about annual percentage rate and how you can use it to understand the annual costs of a loan or credit line. To start, let’s establish a working definition of APR.