In the area of finance and lending, there
are certain terms an individual should be familiar with. One is adjusted percentage
rate or APR as it's known as. Now APR, of course in the area of credit card world as
well as car loan world as well; in fact it's in the area of mortgages. Anywhere where credit
is granted, an interest rate will be given and then of course an individual company will
adjust for its expenses that it needs to deliver the services or money to the consumer. And
normally the APR is a slightly higher rate than the pure monthly interest that's being
charge on the note. An APR varies between a lending companies or credit card companies
or car loan companies or mortgage companies based on their expense ratio that they have
in monitoring their business. So a savvy consumer who is credit worthy, has the ability to check
out the APR rates between lenders to get the very best deal possible.
This is Patrick Munro
discussing the technology of APR..