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What does APR mean?

What does APR stand for?

APR stands for Annual Percentage Rate.

APR is a way that lenders show the interest and additional charges you will pay on what you're borrowing.

What does representative APR mean?

A representative APR is an advertised rate that is presented in a standard way. It allows you to compare and contrast borrowing costs between different lenders. 

When a representative APR is promoted, 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.

Things to keep in mind 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

Why didn't I get the rate I was 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.

More than half of all successful applicants will receive the representative APR. If you did not receive the representative APR, there could be several reasons. For example, you may have applied for a larger or smaller amount of lending than the representative APR covers, or your individual circumstances mean you are not eligible for this rate.

Representative and personal APR - what's the difference?

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 calculated for you based on individual factors, 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

With no impact on your credit rating, you can use our calculator to work out the representative APR and estimate your monthly payments, depending on how much you want to borrow.

Loan calculator Open in new window

Quick Quote tool

We can tell you if you're likely to be approved and show you your indicative personal APR, borrowing threshold and monthly payments. All with no impact on your credit rating.

Quick Quote tool Open in new window

Borrowing needs tool

A loan might not be right for you. Depending on your borrowing needs, an overdraft or credit card might be a better option. This tool will help you assess your borrowing options.

Borrowing needs tool Open in new window