what is the difference between apr and annual fee?
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An interest rate is just that — the rate at which a balance incurs interest charges. An APR (annual percentage rate), on the other hand, encompasses the interest rate PLUS any fees. “APR” and “interest rate” are usually interchangeable when it comes to credit cards, and only tend to differ when it comes to loans.
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A common way of calculating a finance charge on a credit card is to multiply the average daily balance by the annual percentage rate (APR) and the days in your billing cycle. The product is then divided by 365 . Mortgages also carry finance charges.
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The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan. An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate.
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For ongoing fees, the firm charges clients a 1% annual fee for the first £1 million of assets, which covers the basic model portfolio service, and 1% on any regular payments. For assets between £1 million and £3 million, the ongoing charge is 0.75%.
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Some cards have APR ranges — for example, 13% to 23% — which may depend on the type of credit card and your specific creditworthiness. The better your credit score, the lower your interest rate. ... Of course, if you don't carry a balance from month to month, the APR is irrelevant because you'll never be charged interest.
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Flat rates The crucial difference between a flat rate and an APR is that you consistently pay interest on the amount of money that you borrowed at the beginning of the loan throughout its lifetime. It doesn't take into account any money you have repaid. ... With APR, you only pay interest on the money you still owe.
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In personal finance, a finance charge may be considered simply the dollar amount paid to borrow money, while interest is a percentage amount paid such as annual percentage rate (APR). ... In financial accounting, interest is defined as any charge or cost of borrowing money. Interest is a synonym for finance charge.
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A APR (annual percentage rate) is the annual rate of interest payable on mortgages, loans, credit cards and other credit products. ... AER (annual equivalent rate, although sometimes known as the annual effective rate) is usually used in savings accounts.
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APR stands for annual percentage rate, and is the basic way in which credit card issuers work out how much it will cost you to borrow money. If your card comes with an APR of 24%, then that means that if you spend £500 and don't pay it back for a year, you'll be charged £120 on top of what you borrowed.
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Some issuers calculate the minimum payment as a percentage of the balance at the end of the billing cycle, plus a monthly finance charge. 1﻿ So, for example, 1% of your balance plus the interest that has accrued. Let's say your balance is $1,000 and your annual percentage rate (APR) is 24%.
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Loans are typically offered with either a fixed rate or variable rate. A fixed APR means that the interest rate will not change during the life of the loan. A variable APR, on the other hand, indicates that the interest rate may fluctuate during the course of the loan duration.
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The American Express Gold Card The Gold card comes with an annual fee of $250, and there is no annual fee for adding any additional cards to a Gold account. ... Unlike traditional credit cards, American Express charge cards do not have a regular APR or charge interest, as all balances must be paid in full each month.
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Title Loans are Expensive Lenders often charge an average of 25 percent per month to finance the loan. That translates to an APR of at least 300 percent. It could be higher, depending on additional fees that the lenders may require.
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APR is also the annual rate of interest paid on investments without accounting for the compounding of interest within that year. The rate is calculated by multiplying the periodic interest rate by the number of periods in a year in which the periodic rate is applied.
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Remember, APY indicates the total amount of interest you could earn on an account in a year, taking into account frequency of compounding interest. APR, however, refers to what you owe, and does not reflect frequency of compounding interest.
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25.24% variable APR. Cash Advance Fee. $10 or 5% of advance whichever amount is greater. Annual Fee.
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It does this by dividing the fees over the future life of the mortgage. In any month, the interest payment, plus the upfront fees allocated to that month, divided by the loan balance at the end of the preceding month, equals the APR. See Annual Percentage Rate Simplified.