WTF is a comparison rate?

Interest rates and comparison rates are kind of the same, but also VERY different. Kind of like saying each Kardashian is the same. Interest rates – the amount a lender charges for the use of the borrowed money. It’s generally…

WTF is a comparison rate?

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Interest rates and comparison rates are kind of the same, but also VERY different.

Kind of like saying each Kardashian is the same.

Interest rates – the amount a lender charges for the use of the borrowed money. It’s generally expressed as a percentage.

Comparison rate – the interest rate percentage plus all other associated fees, such as establishment fee and monthly fee.

What’s the key learning?

Always look for the comparison rate – this is the true cost of the loan.

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