What is APR?

Posted: Friday, March 25th, 2016

Part of securing and following through with the payment of a loan is knowing exactly how much money to set aside each month between your daily expenses and paying off your debt. That’s where the topic of APR, or annual percentage rates, and regular interest rates comes in. But what is an APR? Read through Green Light Auto Credit’s explanation of APR, contact us to begin the process of applying for a reasonable loan today.

What is the Difference Between APR and an Interest Rate?

An annual percentage rate is the total amount of annual interest you’ll pay on your entire loan amount. Interest rates only reflect the current cost of borrowing, whereas the APR takes the interest rate as a starting point and factors in the lender rates that are required to finance a loan. Typically, APRs are taken out for mortgage loans and there are many pro’s and con’s involved in paying a lower or higher APR. Lower APRs mean lower monthly payments, but you’ll be paying off your loan over a longer period of time. For higher loan amounts at higher monthly payments, choosing a higher APR is likely your best option.

How Do You Get a Low APR on a Car Loan?

The first step to getting a low APR is to acquire a copy of your credit report. Bolster your credit rating and research average interest rates in your area, then decide on a payment plan that you can stick to. Set up monthly reminders and reassess your payment schedule every two or so months to ensure that you are on track. Consider making a bigger down payment to cushion yourself against any potential complications such as late payments or shifts in your payment amounts. And most importantly: if you feel like you’re getting a bad deal, be prepared to walk away from the negotiating table and find a lender that you’re comfortable with.
How to Get a Great Loan Rate

Why Choose Green Light Auto Credit?

Green Light Auto Credit prides itself on the accessibility and understandability of our loan application process, and we work diligently to ensure that our patrons are well taken care of from start to finish. We believe that everyone deserves the chance to build a reliable and sterling credit record, and to that end we will work with applicants that otherwise would be looked upon as a risk and set them up with easily payable loans to help rebuild their credit. Get started by filling out one of our financial applications and learn more about annual percentage rates from one of our on-hand credit agents.

Learn More About APR at Green Light Auto Credit

Learning the in’s and out’s of APR rates can be a real head-scratching topic. Luckily for borrowers, Green Light Auto Credit is here to guide you through the jargon so that you can confidently secure and pay off a reasonably priced loan. Feel free to contact us at 866-845-1603 to learn more about APR, interest rates, and how they impact your ability to pay off your loan.

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