Home

Summary

APR's are supposed to be a reliable basis on which the public can judge the true cost of the money they borrow. But can the figures be relied on? This article comments.

Loans Are lenders cheating on APR's? Page 2

Author: Michael Challiner

So if one finance company is offering you a

Secured Loans In UK Are The Best Option For Borrowers: A good introduction to the topic of secured loans
Personal Loans are here to fulfill your Personal Desires: Introduces the key issues when choosing a personal loan.
Consolidation Loans for Tenants. Empowering Tenants with a Method to Counter Debts: Tenants will find it harder to raise a loan but its not impossible. This article explains
Options for Individuals with Bad Credit: How do you get a bad credit history and what can you do about it? This article provides some ideas
Loan cover. watch out for Payment Protection Sharks: Around 50% of borrowers get Payment Protection Insurance for their loan. It would appear that many are being ripped off. This article investigates the pitfalls and the solutions.
Adverse Credit. When is a credit history described as adverse: When do have an adverse credit rating? The situation is far from clear but this article sheds light.

Life Insurance News

loan at 5.6% plus an application fee of £100 and another is offering you an interest rate of 5.8% with no fees, then a comparison ( cheap mortgages )of the APR figures will prove which of the loans is cheapest.

APR Variable
When you see APR with the word Variable written after it, this means that the interest rate can vary whilst you are repaying the loan - the interest rate is not fixed.

APR Variable Typical
This variant is used in 92% of all loan advertisements. It means that the advertiser can't be specific about the interest rate applicants will be offered as their rates vary, usually in response to the applicant's personal credit ratings and the amount of money they want to borrow. { medical insurance articles } Therefore, APR Variable Typical is used to give the public a general impression of the interest rates currently on offer from that lender. The addition of the word Typical means that at least 66% of applicants approved for a loan are offered that rate or cheaper . Then when a loan offer is confirmed, the paperwork will reveal the actual APR or APR Variable actually being offered.

Don't forget that the word Variable within the { remortgage articles and rates } description also means that the interest rate isn't fixed and may vary from time to time, go up or down.

APR Typical
This is the same as APR Variable Typical except that the interest < insurance > rate is not variable - it is fixed for the duration of the loan.