What does APR mean?
The overall cost of your credit is called the annual percentage rate (APR). This includes:
- The percentage rate of interest you must pay each year
- Any other charges from the lender during the time you have this credit.
Here's an example:
Let’s say you borrowed £2,000 at 10% APR for 5 years. At the end of the first year, if you don’t pay anything back, you’d owe your lender £2,200 — the £2,000 you borrowed and £200 in interest.
Why are the APRs you’re showing too high?
Higher APR offers often have better deals (such as 0% purchase periods, cash-back, air-miles etc.). These are usually given to people with higher credit scores.
If you’re making your repayments in full each month or taking advantage of 0% purchase periods. Then a high APR shouldn’t affect you as you’ll avoid paying any interest.