What’s an APR?

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APR stands for Annual Percentage Rate. An APR represents that price you pay on borrowed money or debt.

There are multiple types of APRs, the most common two are “fixed APR” and “variable APR”. The term “fixed” means that the APR will neither go up or down for the life of the loan. The rate you were given at the time of the loan will stand until you pay off the loan. The term “variable” means that the rate may change in either direction throughout the life of the loan. This means the rate you were given at the time of the loan may change over time, potentially making your payment change as the rate fluctuates.