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Aug 19th, 2010, 01:16 PM
#1
Explain APR in simple terms
Let's say I take a loan out for 10,000 GBP. The bank page says it will be at "10.9% APR Typical". Let's also assume that they want me to pay them back over the course of 2 years.
OK - so I looked up APR and as usual, there's an information overload. So I immediately thought, why not ask you guys to explain - in very simple terms - how much I'll be paying back every month and in the long run, how much will I be paying above the 10,000 GBP in interest (which is likely the bank's profit).
Related question - the reason I want to take a loan out is to improve my credit rating. When taking the loan, is actually saying "to improve my credit rating" a valid reason, or do I need to make something up?
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