In the context of consumer lending, the APR takes into account more than the interest rate applied to the principal per period. Under the Truth in Lending Act, it has a specific definition and ...

PFCs are most notable because they determine annual percentage rate (APR) of a loan. Lenders are required by law to disclose APR. This is a good idea in concept, but not so simple in practice.

Our opinion is our own. Read more on our methodology here. APR stands for ‘annual percentage rate’. When you’re searching for loans, credit cards, car finance and other kinds of credit ...