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How would you determine if 8 percent APR is better or worse than 5.24 percent APR?
Confident9
"APR" means "Annual Percentage Rate". When money is borrowed and not paid back
immediately, that's the piece that gets added on to it each year, as the price for the
convenience of not paying it back yet.
If you're the borrower and you have someone else'smoney, then you want the
lowest possible APR. That's on a credit card, a car loan, a home mortgage, etc.
If you're the lender and somebody else has yourmoney, then you want the highest
possible APR. That's on a bank savings account, an investment, a CD, etc.
Wiki User
∙ 12y ago
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