Annual Percentage Rate

Written By Melissa Cook
Jan 5, 2023
Facebook Share Icon LinkedIn Share Icon

An annual percentage rate (APR) is a measure of the cost of borrowing money, expressed as a yearly interest rate. It is typically used to compare different loan or credit products, as it takes into account not only the interest rate charged on a loan, but also any fees or additional charges that may be associated with the loan.

To calculate the APR, lenders consider the interest rate, any origination fees, and any other charges that may be associated with the loan. These charges are then expressed as a percentage of the total loan amount and are compounded on a yearly basis. This means that the APR takes into account the effect of all these charges over the life of the loan, allowing borrowers to compare the total cost of borrowing from different lenders.

For example, if a lender charges a 5% interest rate on a loan with a $100 origination fee, the APR would be higher than if the same lender offered a 6% interest rate with no origination fee. This is because the origination fee would be included in the APR calculation, effectively increasing the cost of borrowing.

It is important to note that the APR is not the same as the interest rate. While the interest rate is the amount charged by the lender for borrowing money, the APR includes additional charges and fees, making it a more comprehensive measure of the cost of borrowing.

Borrowers should be aware that the APR can vary significantly between different lenders, even for loans with similar interest rates. It is therefore important to compare the APR of different loan products when shopping for a loan, in order to ensure that you are getting the best deal possible.

Overall, the APR is an important tool for borrowers to use when comparing different loan or credit products, as it provides a more accurate representation of the total cost of borrowing. By understanding the APR, borrowers can make more informed decisions about which loan or credit product is the best fit for their needs.

MORE ARTICLES

See how Americor can help

Check Your Options

About Americor

Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

more
Address:
18200 Von Karman Ave, 6th Floor Irvine, CA 92612
New Clients:
[email protected]
Existing clients:
[email protected]
Phone:
866-333-8686

We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

Americor Funding, LLC (18200 Von Karman Ave, 6th Floor Irvine, CA 92612) is fully accredited by the Better Business Bureau (BBB), the American Fair Credit Council (AFCC), and the International Association of Professional Debt Arbitrators (IAPDA). CA Department of Financial Protection and Innovation (DFPI) License # 603K913.

Copyright © 2022 Americor Funding, LLC dba Americor Financial. All rights reserved