Understand the jargon
When you apply for a credit card or personal loan, the lender will quote interest as the annual percentage rate (APR). This is, essentially, the total cost of borrowing over 12 months, shown as a percentage of the amount you have borrowed. It takes fees into account, as well as interest. The rate should give you an idea of how much you will have to pay back on top of the money you want to borrow.
