We notice the browser you are using is outdated and no longer supported on our site. Let’s get that fixed.

About credit

Return to frequently asked questions

Annual percentage rate (APR) is a standardised way to show the cost of borrowing over a yearly period.

It is used when comparing credit cards or loans to help you understand the cost of borrowing. It takes into account the interest rate and additional charges of a credit offer. The APR only includes compulsory charges such as annual fees.

It is also based on purchases only and doesn't look at different rates and fees which might apply if you use the card in different ways. For example, fees charged for the processing of balance transfers, cash withdrawals or foreign usage are not included. It also doesn't include any fees or charges that may be applied if you are late with payments or you go over your credit limit.

All lenders have to tell you what their APR is before you sign a credit agreement. You should always check the terms and conditions.