The Annual Percentage Rate (APR) is an expression of the yearly interest rate that will be paid on a loan (which includes credit cards). It differs from the advertised interest rate, as it includes one-time fees in an attempt to calculate the “total cost” of borrowing the money. Therefore, it is wise to always look for a low APR. Because lenders are required to disclose the APR before a loan or credit application is finalized, it makes it easier to compare lenders. For example, if a person borrows $100 for one year at 5 percent simple interest (they will owe $105 at the end of the year), and the lender charges a $5.00 fee, the total cost to borrow the money will actually be $10, meaning the APR is 10 percent.