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Annual Percentage Rate
When you hear about Annual Percentage Rate (APR) in the context of credit cards it refers to the periodic rate times the number of periods in a year. For example, a 1.5% monthly rate has an APR of 18%.
The Consumer Credit Act 1974 requires companies that advertise loans or credit cards to state what the APR rate is. This enables would be borrowers to compare rates and to see the true rate of interest repayment they would incur over the full year.
Submitted by: admin
Added: Sat May 06 2006
Last Modified: Sat May 13 2006
