What is APR?

The APR of a loan is its Annual Percentage Rate. This is one of the main factors you should take into consideration when choosing your loan. It is the total of interest on the loan plus any other charges that may occur with your loan.

All companies offering loans are obliged to inform you of their APR rate, you can usually say that the lower the APR rate then the beeter deal you are getting but first you should try different loan companies and banks and compare their offers. Often banks can give you a better offer than supermarkets or credit companies.

Ask the following questions before signing anything:

Are there any extra charges not included in APR?
Is the APR fixed or variable?
Read the small print, are there any hidden conditions?
What happens if you miss a payment?