What is Annual Percentage Rate (APR)?
APR (annual percentage rate) is a standardised way to disclose the cost of borrowing and is calculated using a number of assumptions prescribed by law.
Under a running account credit agreement, we have to calculate the APR based on an assumed amount of €1,500 and over a 12 month period even if you're paying your agreement back over 10 months or less. This ensures that the use of APR is standard across all credit providers and means you can use it to compare different credit options.
The interest rate you will actually be charged is listed on your credit agreement as the gross rate.