The APR is of course a well-known term in the world of loans, but for those who do not know what the letters stand for, here is the translation: Annual Cost Percentage. In fact, this means nothing else than the interest rate that applies to a loan. The interest rate is, as the name JKP suggests, based on a year. Because the vast majority of consumers take out multi-year loans, you can in fact also calculate what it will cost on the basis of the APR. Fortunately, you do not have to make this calculation at all yourself, because this naturally helps you with the loan simulation, which can always be used. A loan simulation prevents you from having to do all the calculations yourself.
The importance of a low APR
A low APR is of course not something that you have a lot of influence on. Of course, you can look for the most favorable APR, but otherwise you will just have to make do with what you are offered by the different lenders. So the only thing you can do is compare loans and then do it. By the way, it is of course just the case that if you have indeed found a provider with a low APR it will probably be satisfactory. With some loans, a low APR is unfortunately just a little less possible. You can think of a personal loan, where the lowest APR that is possible is often a few times as high as with a car loan. So in some cases it just doesn’t get better.
APR differs per loan
We already mentioned it, but with different loans you also have to deal with a different APR. With a certain loan you might for example think that you are actually paying a far too high APR, but if this is – as has just been indicated – a personal loan you will still be able to have the lowest APR in the market with an apparently high APR. to have. So it will indeed depend on your loan.