RSSWhat does APR stand for?
May 18
Uncategorized annual percentage rate, apr, cash advance, payday advance No Comments
What does APR stand for?
APR is an acronym for: annual percentage rate. When you apply for a loan, you’re required to repay the loan amount plus an interest fee, which is usually expressed as an annual percentage rate. The interest rate is computed in terms of one year. Depending on the loan term in the contract, the interest is calculated accordingly. In other words, you only have to pay interest for as long as you owe the loan.
The interest fees on payday advances are calculated differently according to your state regulations. Typically, most cash advance interest fees are calculated based on a percentage of the loan amount. This fee, if calculated in terms of an annual (meaning one-year term) is 300%-800%. However, it’s important to understand the difference in a one-year loan and a payday advance. Because a payday advance usually has a 14-day term, the interest applied appears to be much higher than it actually is. For example, the average interest fee is $15 for every $100 borrowed. So, it may appear much more when calculated with a one-year term.