Definition of Annual Percentage Rate / APR

Shop the Debt Consolidation Loan Directory (by using the pull-down bars below) for a company providing a wide range of financial service options including mortgages, insurance, unsecured personal loans and debt consolidation.

Choose a program
Choose a state
Please choose a service or product type selection for your financial services needs.
Please make a state selection for your debt consolidation and financial services needs.
del.icio.us Digg

Debt Consolidation Glossary and Related Terms:


Other Finance Related Services - The following directory listings on DebtConsolidationLoan.com are provided to assist you with the management or consolidation of your debt. Also, while on this site, feel free to shop for other financial services such as auto insurance and home equity loans.

  • Debt Management Credit Counseling - Having trouble managing the demands of mounting credit card debts and other bills? You are not alone. Using the services of a debt management company may be the solution to your problems.
  • Credit Debt Consolidation - Learn more on how consolidating your credit card debts can work for you and potential pitfalls that you need to avoid. Also, review a list services that offer to help people lower their bills into fewer payments or even one payment.

Annual Percentage Rate definition

Define Annual Percentage Rate (APR): The Annual Percentage Rate, or APR, is the annualized rate of interest charged for a loan or debt. It includes all costs and fees, and is expressed as a single figure. The APR may vary significantly from the advertised interest rate. In most cases, the APR is required to be advertised alongside the interest rate. This APR requirement is intended to allow a potential borrower to quickly and accurately gauge the true cost of a loan or borrowing money.


For example, a personal loan for $1000 might be advertised at a rate of 10%, giving the appearance that it would cost only $100 per year. In addition, however, the loan has processing and servicing fees amounting to an additional $240 per year. Thus, the actual cost of the loan would be $340 per year, for an APR of 34%. Each state has a cap (or limit) for the annual percentage rate that may be charged on various types of debt. These caps are typically referred to as usury laws.


The important points to remember are these: 1) Never borrow money without knowing all of the costs associated with the loan, credit card, mortgage, etc. 2) Be sure to compare financing offers based upon the annual percentage rate because it contains all of the costs you will incur when taking out a loan.



Personal Finance Terminology Definitions
Index: A
Previous: Appraisal - Next: Assessed Value



Please Note

The Debt Consolidation Loan Directory is a service of Infinamic, Inc. All information is deemed reliable, but not guaranteed. Infinamic, Inc. is not responsible for the content and services, that may be provided to you, by following the links from this web site. Use this service at your own discretion.