Finance Glossary

Representative APR

The APR that at least 51% of customers accepted for a loan product will receive. Because lenders offer different rates based on individual creditworthiness, the representative APR gives a standardised benchmark for comparison. Your actual APR may be higher or lower depending on your credit profile.

Example

A lender advertises a representative APR of 39.9%. If you apply, you might be offered 49.9% if your credit score is lower than average.

Related guides

Apr Explained

Related terms

APR
Annual Percentage Rate — the true annual cost of borrowing,
Interest Rate
The percentage of the loan principal charged by a lender for
Creditworthiness
A lender's overall assessment of how likely a borrower is to
Credit Score
A numerical rating assigned by credit reference agencies tha
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