# APR (Annual Percentage Rate)

*Borrowing & Credit — Finicade finance glossary*

The yearly cost of borrowing money, expressed as a percentage. It bundles the interest rate with most fees, so it's the number to compare when choosing between loans or credit cards — a lower APR means the debt costs you less.

**Also known as:** annual percentage rate

**Related terms:** [APY (Annual Percentage Yield)](https://finicade.com/glossary/apy), [Interest Rate](https://finicade.com/glossary/interest-rate), [Compound Interest](https://finicade.com/glossary/compound-interest), [Credit Card](https://finicade.com/glossary/credit-card)

**Taught in:** Money Basics — Debt: Interest Working Against You

Source: https://finicade.com/glossary/apr