spot_img

APR vs Interest Rate: What’s The Difference?


When taking out a loan, review both interest rates and APR. Do this whether you need a loan to buy a home, replace your car, pay for college, or consolidate debt.

If you only consider a loan’s interest rate, you’re not fully understanding what you will pay each month. By considering APR, you can more easily fit loan repayment into your monthly budget without unpleasant surprises.

Want to know more? Learn about the difference between APR and APY (annual percentage yield) to deepen your understanding further.

* To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

1 Information from Investopedia’s Interest Rate vs. APR: What’s the Difference? as of 12/7/2023: https://www.investopedia.com/ask/answers/100314/what-difference-between-interest-rate-and-annual-percentage-rate-apr.asp

2 Information from Experian’s What’s the Difference Between APR and Interest Rate? as of 12/7/2023: https://www.experian.com/blogs/ask-experian/apr-vs-interest-rate-whats-the-difference/



Source link

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest Articles