whats apr
Explain it like I'm 16
APR stands for Annual Percentage Rate. It shows the yearly cost of borrowing money, including the interest rate and sometimes certain fees. A higher APR usually means a more expensive loan or credit card.
A real-world example
If you borrow £1,000 on a credit card with a 20% APR and make no repayments, the borrowing could cost roughly £200 over a year, although the exact amount depends on how interest is calculated and any fees.
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Why this matters
APR helps you compare the real cost of different loans and credit offers.
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