What is APR?
An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. Financial institutions must disclose a financial instrument’s APR before any agreement is. Mar 08, · APR is an annualized representation of your interest rate. When deciding between credit cards, APR can help you compare how expensive a transaction will be on each one. It’s helpful to consider two main things about how APR works: how it’s applied and how it’s calculated.
Miscellaneous » Months Abbreviations -- and more Business » General Business -- and more Business » Accounting -- and more Business » Accounting. Computing » Software -- and more Governmental » US Government. Governmental » Military. Business » General Business. Medical » Veterinary. Miscellaneous » Unclassified. Computing » Telecom. Computing » File Extensions. Miscellaneous » Dogs Related. Governmental » Transportation.
International » Spanish. We're doing our best to make sure our content is useful, accurate and safe. If by any chance you spot an inappropriate comment while navigating through our website please use this form to let us know, and we'll take care of it shortly.
Forgot your password? Retrieve it. Abbreviation » Term. Term » Abbreviation. Word in Term. Term » Abbr. Filter by: Select category from list What does APR mean?
April, Apr noun the month following March and preceding May see more ». Couldn't find the full form or full meaning apr what does it stand for APR?
Discuss these APR abbreviations with the community: 0 Comments. Notify me of new comments via email. Cancel Report. Create a new account. Log In. Know what is APR? Got another good explanation for APR? Don't keep it to yourself! Add it HERE!
Still can't find the acronym definition you were looking for? Use our Power Search technology to look for more unique definitions from across the web! Search the web. Citation Use the citation options below to add these abbreviations to your bibliography. Powered by CITE. Universal Reference of Links. Uniform Registration Locator. Universal Resource of Links. Uniform Resource Locator. Browse Abbreviations.
Get instant explanation for any acronym or abbreviation that hits you anywhere on the web! Two clicks install ». Download What was the black hand in ww1. April Miscellaneous » Months Abbreviations -- and more Rate it:.
Annual Performance Report Business » Accounting -- and more Annual Percentage Rates Business » Accounting. Apache Portable Runtime Computing » Software -- and more Annual Program Review Governmental » Military. Annualized Percentage Rate Business » Accounting. American Pet Registry Medical » Veterinary. American Precision Industries, Inc. Absolute Pull Range Miscellaneous » Unclassified. Alarm Processing Remote Computing » Telecom. Average Penalty Received Sports. Automatic Payment Receipt Business » Accounting.
Advisory and Payment Request Governmental » Transportation. Arizona Pylon Racing Sports » Racing. Auxiliary Power Reactor Miscellaneous » Unclassified.
About the Author
Category filter: Show All ()Most Common (3)Technology (18)Government & Military (25)Science &. Dec 21, · APR, which stands for annual percentage rate, is the yearly cost of borrowing money. If you borrow $1, for a year at a 20% APR, the total to pay back would be $1, Although that's a . 25 rows · Looking for the definition of APR? Find out what is the full meaning of APR on.
Annual percentage rate, APR for short, is a number that represents the total cost of borrowing money from a lender. With installment loans, the APR incorporates the interest the bank, credit union or finance company charges, plus fees and other costs. The resulting rate helps you determine how much the loan will actually cost you each year.
The APR on credit cards, however, is simply the interest rate you'd pay when you don't pay off your balance in full each month and leaves out any other charges, such as a card's annual fee. As you shop around for financing, it's important to understand how to calculate APRs and compare them between lenders and card issuers. Credit cards can have more than one type of APR, and the different rates are tied to what you do with the card. Before we get into the details of each type of APR, let's go over how credit card companies calculates an APR in the first place.
Credit card issuers sometimes offer one APR for everyone who gets approved for a credit card, but most of the time, they provide a range instead. The APR you qualify for is based on your creditworthiness. This concept is called risk-based pricing —the APR you qualify for is based on how risky the card issuer considers you to be.
If you have excellent credit and a strong financial profile, for instance, you may qualify for the card's lowest interest rate. But if your credit score is low among qualified borrowers, your APR may end up on the higher end of the spectrum. Once you know the APR, you can break it down to understand how much interest you'll pay on a monthly basis. At the end of each day, your credit card issuer will calculate your daily interest rate by dividing your APR by As you make purchases throughout the month, your daily interest will continue to compound each day until the statement closes.
Of course, that doesn't mean you'll actually end up paying credit card interest more on that in a bit. When you look at your credit card agreement, you may see a handful of different APRs. Here are some to know about:. Information about the various interest rates and fees associated with a credit card can be found in the "Schumer box. The Schumer box was created through legislation spearheaded by now-U. Senator Charles Schumer to provide consumers with a simple and standardized display with all the pertinent rate and fee details about a credit card.
In , the Credit CARD Act expanded the concept of the Schumer box and added a requirement that credit card companies provide clear information on all credit card statements. This includes how much you'll pay in interest and fees if you opt to pay only the minimum payment amount due every month. When you're comparing credit cards, you can typically find the Schumer box by clicking on a link from the card's landing page that says something like "pricing and terms" or "rates and fees.
Remember, the interest rate is what the lender charges to allow you to use its funds. But it's not the only cost associated with borrowing. Depending on the type of loan, the APR calculation may also include various other fees you'll be charged. This is where credit cards and loans differ in how they calculate APR—even if a credit card has an annual fee or other fees, it's not included in the APR formula. With loans, however, the APR truly encompasses the total cost of the debt.
For example, a mortgage APR may include points, which are fees paid to lenders at closing in exchange for a lower interest rate. Lender fees and other charges you may need to pay to secure the loan also count toward a loan APR. APRs for dealer-underwritten auto loans sometimes include compensation for the dealer because it's handling the financing.
Also, some personal loans carry an origination fee, which is deducted from your loan proceeds before you receive them. A loan APR takes these additional costs into account, which is why the APR is typically higher than your interest rate. Virtually all credit cards offer grace periods—typically 21 days or more after each monthly statement closes—during which you can pay your balance with no interest attached.
You can avoid paying interest every month entirely by paying off the full balance by the due date. Remember, though, that the grace period applies only to new purchases.
If the due date for your payment rolls around and you don't have the funds to pay your balance in full, you will be charged interest on the amount that remains. These finance charges can snowball due the fact you'll be paying interest on your interest charges as well, a practice known as compounding.
Compounding interest means you will be charged on everything you owe—the unpaid amount on the card, the previous month's interest and on whatever new purchases you made.
Credit card interest can get dangerous if you make just the minimum payment every month. If possible, make it a goal to pay your balance in full each month to avoid interest. Lenders consider more than just your credit score when determining your APR on a loan or a credit card. But the better your credit history looks, the higher your chances of scoring favorable terms.
You can check your credit scores to see where you stand and pinpoint areas that may need some work. Also, get a copy of your credit report to check for errors and items that may need to be addressed.
As you work on improving your credit, it's no guarantee you'll get the best APRs possible, but it will give you the opportunity to get a lower rate than what you currently qualify for, which can save you a lot of money in the long run.
Editorial Policy: The information contained in Ask Experian is for educational purposes only and is not legal advice. Opinions expressed here are author's alone, not those of any bank, credit card issuer or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities. All information, including rates and fees, are accurate as of the date of publication and are updated as provided by our partners. Some of the offers on this page may not be available through our website.
While maintained for your information, archived posts may not reflect current Experian policy. The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future post.
Offer pros and cons are determined by our editorial team, based on independent research. The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews. Advertiser Disclosure: The offers that appear on this site are from third party companies "our partners" from which Experian Consumer Services receives compensation.
This compensation may impact how, where, and in what order the products appear on this site. The offers on the site do not represent all available financial services, companies, or products. Once you click apply you will be directed to the issuer or partner's website where you may review the terms and conditions of the offer before applying. We show a summary, not the full legal terms — and before applying you should understand the full terms of the offer as stated by the issuer or partner itself.
While Experian Consumer Services uses reasonable efforts to present the most accurate information, all offer information is presented without warranty. Experian websites have been designed to support modern, up-to-date internet browsers. Experian does not support Internet Explorer.
If you are currently using a non-supported browser your experience may not be optimal, you may experience rendering issues, and you may be exposed to potential security risks. It is recommended that you upgrade to the most recent browser version. Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian and its affiliates.
The use of any other trade name, copyright, or trademark is for identification and reference purposes only and does not imply any association with the copyright or trademark holder of their product or brand. Other product and company names mentioned herein are the property of their respective owners. Licenses and Disclosures. Keep more cash in your wallet with a low interest credit card. Advertiser Disclosure. By Ben Luthi.
See Your Offers. Latest Research. Latest Reviews. Low Interest Credit Cards Keep more cash in your wallet with a low interest credit card. Start Now Start Now for Free.