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Glossary

APR (Annual Percentage Rate)

The yearly cost of borrowing, including interest and most fees, expressed as a percentage.

APR is the annual cost of a loan expressed as a percentage, and unlike a simple interest rate it folds in most lender fees. That makes it a better apples-to-apples number when comparing loan offers.

Because APR includes fees, it is usually a little higher than the quoted interest rate. When comparing two loans, the one with the lower APR is generally cheaper overall, all else equal.

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