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Representative APR[edit]

Representative APR is the interest rate on a loan. They determine the representative APR by choosing the interest rate that 51% of their customers are offered. Representative APR should be stated on their website and by law, it must be clearly displayed on a credit agreement if you decide to get a loan with the lender.
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What do you mean by Representative APR

The representative APR portrays the interest rate that 51% of people entering into an agreement with that company usually pay. The representative APR will take into consideration other charges associated with what they are offering and will be explained within the representative example.

As of February 1st, 2011, if an advertisement for a loan includes an interest rate (the amount they charge on top of the money you pay back) it must also include a representative example. This must contain specific information including a representative APR. Companies will charge people different APR's depending on your credit rating or your income.

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What is a Representative Example

The representative example must include standard information and must state the words 'representative example'. It must include the following information:

  • Rate or Interest (fixed or variable)
  • Any total cost of credit charges – fees or charges included
  • Total amount of credit
  • Representative APR

It must clear and concise and presented ordered together. It must be very visible to the customer on their page. This enables the borrower to see exactly what they will pay back if they are offered a loan with the representative interest rate.

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Use the information on our website at your own discretion. We try to make sure it's 100% accurate all the time we're only human and we can't be held responsible for any inaccuracies.

Loanpages.co.uk is a free to use comparison site. It's important to remember that the rates displayed on our website are representative. The actual APR will depend on the lender, the loan amount and the borrower's credit circumstances. Whilst we work with a number of lenders, we never let any money we get paid affect the information that's on our site.

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