This stands for Annual Percentage Rate – which is the cost of borrowing money over the course of a year. Having it as a percentage figure allows people to compare the cost they’ll face when taking out a loan or credit card.
Lenders also use something called ‘Representative APR’. This is the APR that 51% or more of successful applicants will get. But that rate may not be available to the other 49% of applicants, who are likely to be offered a higher rate.
This is why it’s so important to pay attention to the APR% when checking your eligibility, as it gives you a good idea of just how much you will be paying each year for borrowing money from lenders.