When taking out a loan, review both interest rates and APR. Do this whether you need a loan to buy a home, replace your car, pay for college, or consolidate debt.
If you only consider a loan’s interest rate, you’re not fully understanding what you will pay each month. By considering APR, you can more easily fit loan repayment into your monthly budget without unpleasant surprises.
Want to know more? Learn about the difference between APR and APY (annual percentage yield) to deepen your understanding further.
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1 Information from Investopedia’s Interest Rate vs. APR: What’s the Difference? as of 12/7/2023: https://www.investopedia.com/ask/answers/100314/what-difference-between-interest-rate-and-annual-percentage-rate-apr.asp
2 Information from Experian’s What’s the Difference Between APR and Interest Rate? as of 12/7/2023: https://www.experian.com/blogs/ask-experian/apr-vs-interest-rate-whats-the-difference/
