APR is a way of showing the total yearly cost of a loan — the interest plus certain fees — so you can compare loans more fairly.
The annual percentage rate expresses the cost of credit as a yearly rate, incorporating the interest rate plus certain lender fees and costs.
Because APR includes some fees, it can be a better apples-to-apples comparison between loan offers than the interest rate alone.
A loan with a low interest rate but high fees may have a higher APR than a loan with a slightly higher rate and few fees.
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