What is APR?

APR stands for Annual Percentage Rate and is a measurement used to assess the cost of borrowing money. It is expressed as a percentage and takes into account the interest rate, as well as any other fees associated with the loan. In California, credit card companies are required to disclose the APR rate to their customers in order to make the borrowing process more transparent. The annual percentage rate is meant to give borrowers an indication of how much their borrowing costs by taking into account all the different fees associated with the loan. It can include fees such as membership fees, annual fees, late fees, cash advance fees, and other fees. By disclosing this information, it allows borrowers to compare the different credit cards on the market and make an informed decision based on the APR rate. The law also requires companies to disclose the APR rate before any credit card is approved and the APR must remain the same for the full term of the agreement. This allows customers to be aware of the cost of borrowing before signing any loan agreement.

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