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Interest Rate Definitions

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savin_2
savin_2 Posts: 1 Newbie
in Loans
Can anyone describe the difference between apr and pa interest rates as i would like to compare different balance transfer rates.

Comments

  • Stonk
    Stonk Posts: 937 Forumite
    Always use the APR figure for comparisons. APR includes all interest and all credit charges that are added to the debt. Any consumer credit facility has to clearly display its APR.

    The "per annum" you have seen is probably the "bare" interest rate, without adding any charges. It may well be the same as the APR, if there are no additional credit charges.
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