What is APR?

What does APR stand for?

APR stands for Annual Percentage Rate.

It is a way of presenting the interest payable on what you're borrowing, added up with other charges, such as arrangement fees. 

What's a representative APR?

The representative APR is an advertised rate that all lenders use to help you compare the cost of borrowing in one handy format.

When you see a representative APR, it means that over half of people who've taken out a loan of a particular size from a lender have been given this rate.

A few things to note about representative APRs: 

  • They change depending on the loan amount 
  • Just because a lender has a low or high representative APR, it doesn't mean they'll offer you the best rate
  • The rate you're offered won't necessarily be the same as the representative APR

Didn't get the rate you were expecting?

You won't necessarily get the advertised APR. All applications are assessed on an individual basis, so the APR you get is determined by your own circumstances and credit history, this is your personal APR.

Over half of successful applicants will receive the representative APR displayed. If you did not receive the representative APR, you may have applied for a different amount of lending than the representative APR covers, or your individual circumstances mean you are not eligible for this rate.

The difference between representative and personal APR

Representative APR

When you see a representative APR, it means that over half of people who've taken out a loan of a particular size from that lender have been given this rate.

All lenders advertise their loan rates in this way to help people compare across lenders. The representative APR will change depending on the loan amount.

To be representative it must be the rate offered to at least 51% of people, but it's not guaranteed and anyone applying for a personal loan could pay more than the representative APR advertised.

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Personal APR

A personal APR is a rate that has been worked out especially for you based on things like how much you want to borrow, your financial situation and your credit history.

Your personal APR may be different to the representative APR we advertise, and different lenders may offer you different APRs. 

If you already bank with us, you can find out your indicative personal APR by using our Quick Quote tool. It'll tell you how likely you are to be approved, give you a personalised rate and show you what your monthly repayments could be. And all without affecting your credit rating. 

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Tools to help you

Loan calculator

Use our calculator to find out the representative APR and potential monthly payments, depending on how much you want to borrow. There's no impact on your credit rating.

Quick Quote tool

Find out if you're likely to be approved, with no impact on your credit rating. We'll show you how much you may be able to borrow, your indicative personal APR and monthly payments.

Borrowing needs tool

Depending on what you need money for, a credit card or overdraft might be a better option than a loan. This tool could help you figure out what type of lending is best for you.