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Prodigy Finance: APR explained

Prodigy Finance - February 10, 2016


Taking out a loan can seem like a complicated process, especially if financial terms aren’t part of your every day lingo. However, because taking out a loan is a serious and long-term commitment, it is important that you understand the various terms that come with it. Traditionally, many people think that the interest rate is the deciding factor on which to take out a loan, but actually the most important figure is the APR (Annual Percentage Rate).

APR is the key tool for comparing different loan offers, and understanding the total cost of borrowing over the duration of a loan. Here, we compare two examples, explaining why a rate that may look better on the surface can sometimes cost you more in the long run once the base rate, and all fees are factored in.

Take a look here. 

APR Explained Screen

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