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FlexCredit APR - What is APR and how is it calculated

See how we calculate our APR


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FlexCredit Short Term Loans APR Calculation




The Annual Percentage Rate is the interest payable on the amount borrowed and other charges expressed as an annual rate basis. The advertised APR must represent at least 51% of successful applicants. For us, as licensed credit brokers this implies that a minimum of 51% of our applicants (leads) receive this APR or lower.


The APR calculations include factors such as:
  • The interest you must pay (calculated over a year)
  • How long you repay the loan, how many repayments, and over how many months.
  • Other fees associated with the loan (e.g. late payment charges or transfer fees)

Because APR is calculated on an annual basis, the term for the interest and charges are for taking a loan for a whole year even if it is shorter or longer in some case. This creates the possibility to compare apples to apples when comparing loans but also can be misleading for shorter term loans. Any consumer credit agreement signed must have a prominent APR presented.

Today, the daily interest for any high cost short term product is capped at 0.8 percent per day and also in the longer term; the loan interest and charges must never exceed 100% of the loaned amount.


278% APR Representative

Representative Example: Borrow £1000 and pay £158.18 per month for 12 months at a fixed interest rate of 140% per year. The total interest is £898.16. Total Repayable in one payment is £1898.16. 278% APR Representative.


Please see typical charges for a 12 month term loan:

You Borrow

You Repay

£300

£47.69

£400

£63.58

£500

£95.37

£700

£111.27

£800

£127.16

£1000

£158.95

£1500

£238.43

This table is for illustrative purposes only. Late charges can be up to £15.

We have created this video to try to help explain APR and how it is calculated:




Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

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