Let’s go ahead and say it, APR is NOT the same as your monthly interest rate. Whaaat? Yes, you read that right. Let’s take a look.
APR represent the total cost of borrowing money form your lender, and it is based on the cost of carrying a given balance for a full year.
APR represents the interest rate you’d pay if you carried a balance for a full 12 months, so don’t be deterred from a loan based solely on APR
Although credit cards are the most common form of bank lending. There are others you’re partaking in without even knowing it! Let’s dive in.
So, you’ve decided to take out a loan. Easy, right? Not quite. Luckily there is a calculator for all those equations you should be familiar with.
Not all lenders are the same, and it is imperative that you partner up with the lender that best fits your needs before applying for that loan.
You’ve likely heard the term APR, short for Annual Percentage Rate, thrown around when discovering your loan options, but what does it mean?
In order to understand how it works, you must first know what it is. So, let’s start here. APR stands for Annual Percentage Rate…