In fact, APR is a required disclosure on many advertisements. Unfortunately, this is one of those subjects where a little information can be counterproductive.
Many people make decisions bad decisions using a tool they don t really understand.
This isn t a course in mathematics, and it won t make you an expert in APR, but it will give you the working understanding to make an informed decision. You ll know when to use APR and you ll understand when APR can lead you astray. The basic concept of APR was to create a basis for comparing loans. Since different lenders quote an endless variety of rate, point, and fee options, the government felt too many consumers were unable to determine the overall best value. Admittedly, it s not easy to make comparisons, but APR can be useful if used cautiously.