What is "APR"?

What is "APR"?

Mitchell Freedman, CPA/PFS (CEO, MFAC Financial Advisors) gives expert video advice on: How should I choose a credit card? and more...

In finances there's a lot of alphabet soup. One of the frequently quoted acronyms is APR. APR stands for Annual Percentage Rate. Annual Percentage Rate is about the fairest method to evaluate and compare interest rates that you're going to pay from one company to the next. That is because it is the fairest comparison is it takes into account not only what you're borrowing, but the fees that you might have to pay, either in advance or during the life of the loan, to determine what the true interest rate is.