FAQs - My credit score

What’s an APR?

Moneybarn,
Tuesday, 04 August 2020

APR stands for Annual Percentage Rate. It’s a term commonly used amongst finance lenders and is the total cost that you pay for the money you’ve borrowed for a year. The APR is a separate amount charged on top of your original loan.

It’s important to know that APRs change per product, company and person. Which means you could be charged a different APR to a family member. For car finance an APR is firstly decided by your credit score at the time of applying. If you currently have a bad credit score, you can check using a website or app like Clearscore or Experian, then you might end up paying a slightly higher APR.

To understand more about APRs and what they mean, why not read our article on the topic.