What Is APR?
Whether it’s mortgages, auto loans, or credit cards, you’ve likely seen APR, or annual percentage rate. By understanding how APRs work, you can make better financial decisions when borrowing money. We’ve got the lowdown. Defining APRAccording to the Consumer Financial Protection Bureau (CFPB), an APR is the price you pay for borrowing money. In other words, it’s the yearly rate you’ll pay if you carry a balance, and it can vary from lender to lender. For example, let’s say that you have two credit cards. The APR of one card may be 10.99% and the APR of another might be 15.99%. Your credit scor...