What Is The APR? -


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What Is The APR?

When you apply for loans it is important to know the terms of repayment, and how your payment will be calculated and applied each month. Knowing where your money goes helps you to keep better track of what you have, and to manage your finances each month. One of the most important loan terms is the interest rate, which is the “cost” of borrowing money. The higher the rate, the higher your payment. Having a basic understanding of how interest impacts the balance of your loan is beneficial, because it helps you to figure out how much of the amount borrowed you are actually repaying with each payment versus how much of your hard earned money is going towards interest.

The APR on a loan stands for the annual percentage rate. Here are a few facts about how an APR works:

  • Be wary of credit offers that have a different rate at the beginning of the loan versus 6 or 12 months later. Credit card companies are notorious for making offers with introductory rates that are low, only to increase that rate some time later. This is only worthwhile if you are able to pay the entire balance in full before the introductory rate expires. If there is a balance remaining upon expiration of the introductory rate, the balance is then subject to the higher rate and this can end up costing you more money than if you’d opted for the same rate over the life of the loan or extension of credit.
  • Those people with better credit scores tend to get offered lower interest rates. Keeping an eye on your credit report will help you to identify and correct errors, and knowing your credit score is a powerful tool when negotiating loan terms.
  • Fees are not included in APR’s, so be careful when transferring balances from one account to another and be sure you know up front the entire cost of the transaction.

Not all things in life are things you can control. But, maintaining control of your finances allows you to maintain a small portion of control over a very important aspect of your everyday living. We can help by working with you to develop debt management plans that fit your budget, including consolidation or bankruptcy.


If you have questions about money and bankruptcy, let an experienced attorney help you. Call a Plantation, Florida debt relief attorney today for more information.

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