What APR is for
Annual Percentage Rate packages interest and certain compulsory fees into a yearly figure so you can compare credit products. It is a comparison tool required in UK credit advertising — not a personal quote.
A lower APR is not automatically cheaper in pounds if the term is longer or if fees sit outside the APR. Look at the representative example’s total amount repayable for the stated amount and term.
Representative APR
The representative APR on an advert should be available to at least 51% of people accepted for that promotion. Lenders can still offer a higher rate, a smaller amount, or decline the application after a full assessment.
Eligibility checkers may estimate your chance of acceptance. They do not lock in the advertised APR.
APR and 0% offers
A 0% purchase or balance-transfer period can sit alongside a high purchase APR after the window ends. Missing a payment can end some promotional rates early.
Compare the length of the 0% period, any transfer or annual fee, and the rate that applies afterwards — not a single APR number in isolation.
Why total repayable still matters
Two loans can advertise similar APRs and cost different amounts if one lasts three years and the other five. Stretching the term usually reduces the monthly figure and increases total interest.
Use the loan calculator with the same amount and term as the lender’s representative example. The output is an illustration, not an offer.
Before you apply
Check whether a soft eligibility search is available, whether early repayment charges apply, and whether the product is secured. APR does not tell you if the repayments fit your budget.
This guide is information, not personalised advice. If you need advice, speak to an authorised adviser.