Loans and Credit Cards Glossary - T

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Money terms defined on this page:
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• Typical APR

By law, the typical APR of a loan must be clearly advertised to potential borrowers. It must be the rate offered to at least 66% of people entering into a credit agreement for that loan. So, if a loan advertises its typical APR as 14%, at least two-thirds of its customers must be paying that interest rate or a lower one. This doesn’t necessarily mean that you will be offered that rate, or that your application for a loan will be accepted. In fact, a very low typical APR could be a sign that the lender keeps it low by refusing lots of applications.
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