A credit card’s annual percentage rate (APR) and interest rate are often the same. However, understanding the difference between APR and interest rate could save you money over the terms of your other loans. A loan’s interest rate is an integral part of its APR. However, the formula for a loan APR includes additional fees and charges. The more you know about the differences between interest rates and APRs for credit cards and loans, the better you can manage your financial life.

APR vs. Interest Rate
4 min read
Last Updated: December 11, 2024
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