Why can my APR be higher than the interest rate?
Applicable charges can increase the annualised cost of borrowing. Review the provider’s Key Facts Statement for the exact calculation and included fees.
Look beyond the starting rate.
Understand the difference between annual interest, APR and the final cost of a loan.
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Interest rate and APR are different measures
A nominal interest rate describes interest on the loan; APR is intended to express the annualised cost including applicable charges. A processing fee or other deduction can change the money received and total borrowing cost. Do not compare one provider’s interest rate directly with another’s APR as if they were identical.
The cards identify whether a number is interest or APR. For a final comparison, ask each provider for the personalised APR, net disbursal and total amount payable.