Learn · Credit glossary
What Is Annual percentage rate in Credit? Definition and Why It Matters
Annual percentage rate: the short version
In credit, annual percentage rate is the yearly cost of borrowing including interest and some fees.
Why it matters
Compare APRs, not monthly payments, when judging loan cost.
An example
Say you review your reports and run into annual percentage rate for the first time. Check how it appears on each bureau, note the dates, and use the resources below before deciding what to do; small misunderstandings about annual percentage rate cause many avoidable mistakes.
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Educational information only. Not financial, legal or credit-repair advice, and no outcome is promised. Verify current rules with the official sources linked below before acting.
Official sources: annualcreditreport.com (free weekly reports), consumerfinance.gov, ftc.gov.