What is Annual Percentage Rate (APR)?
APR stands for Annual Percentage Rate. You can use this rate to compare the cost of borrowing from different lenders.
The APR takes into account not just the interest charged on the amount of your credit limit but it also has to include any other charges you may have to pay, for example an arrangement fee.
Under our Running Account Credit Agreement, we have to calculate the APR based on a 12 month term, even if you're repaying your credit agreement back over a shorter term.
All lenders have to tell you what their APR is before you proceed with an agreement, and may vary from lender to lender.