What is an Annual Percentage Rate (APR)?

APR (annual percentage rate) is a standardised calculation designed to assist consumers in comparing the cost of credit. The APR  is calculated using a number of assumptions prescribed by law. 

Under a Running Account Credit Agreement, the APR is calculated on the assumption that the full credit limit (as shown in the agreement) is drawn down and together with interest and any facility fee is repaid equally over a period of 12 monthly repayments. We need to display it this way even if you’ve borrowed less than the credit limit and your repayments are spread over 10 months or less. 

In your credit agreement we also show the annual rate of interest. This rate is reflective of the actual amount borrowed and actual number of repayments.