Just seen the tv addy for "quick quid" and the apr figure was 2356% is that a record????
sadly no.
No - I'm sure it was higher than that when Norman Lamont was chancellor
Frightening isn't it?
So if I borrowed a tenner, how much would I have to pay back? 😯
over how long?
A month?
That depends on how long you borrow it for. Using APR or AER for very short term loans, say for a few days, can be a bit misleading.
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uplink - Memberover how long?
Posted 1 minute ago # Report-Post
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lookmanohands - MemberA month?
doesn't the A in APR stand for annual?
just a guess like
🙄
If the loan period is for a month you still need to provide an APR or AER although as gonefishin says this can be misleading.
For example if I leant you a fiver for a week and you paid me back a tenner then the actual interest is 100%. The APR would be astronomical but irrelevant.
That is quite common with Pawn Brokers, Cash Converters, Cheque Cashers etc. They are required to put that by law, by as said before, its a a little misleading.
The APR would be astronomical but irrelevant.
4.5x10^15% if I'm doing it right i.e. 2 to the power 52.
Yeah, there used to be an ad on the local radio for some company called Wage2Day which had about 1900% APR.
Usual thing seems to be that you pay back £125 or £130 per £100 borrowed.
APR figure is given for comparison purposes but it's a bit misleading cos it has to be paid back at the end of the month.
Well I think APR is relevant simply because it allows you to compare different loans over different periods of time. One caveat though is that I think one off fees are factored into APRs so that can distort things for short-term loans.
I'm not trying to imply that APR isn't relevant, just that it isn't the be all and end all for loans. If you are comparing loans over significantly different time periods then the lowest APR may not be the cheapest loan.