What is APR?

APR (Annual Percentage Rate) is the annual interest rate charged on the money you borrow. It is calculated per year and split over 12 months. It forms part of your monthly repayments and is often referred to simply as ‘interest’.

That’s just the tip of the iceberg…

Many financial organisations advertise their interest rates for loans using the term ‘representative APR’. This shows the cheapest available loan rate, also known as the ‘headline rate’.

Firms are allowed to advertise a representative APR if they reasonably expect 51% of applicants will receive the headline rate. The remaining applicants (approximately 49% of them) could be charged a higher interest rate, usually after reviewing your credit file and application. We recommend that you are careful when applying for financial products with representative rates, as you will only find out your interest rate once you have been credit checked. At this point, a footprint has been left on your credit report which could affect your credit score.

When applying for credit, please be aware that if the advertised APR is representative, there is no guarantee that you will be charged the advertised rate.

We don’t believe that charging our members representative is fair, so we don’t offer them. With our loans, the rate you see is the rate every member gets if accepted, regardless of credit score. All our loans are individually assessed on affordability and subject to status and our lending criteria.

Click here to see the loan products we offer. You can use our loan calculator to see exactly what your repayments would be if accepted.