APR (Annual Percentage Rate)
The yearly interest rate on a loan or credit, before compounding.
Definition
APR is the headline rate; APY (annual percentage yield) is the effective rate after compounding. Credit cards quote APR but compound daily, making the effective rate higher. Average US credit card APR in 2024: 24.7% — the highest in history.
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One of 40 glossary terms. Browse the full glossary →