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APR is self-explanatory; annual percentage rate, this is the percentage amount over the year and not monthly. Every loan, credit card, mortgage or any other financial loan has APR on it, it's a legal requirement to display the APR, to simplify the term would be to say that the APR is how much the loan will cost you over the year to borrow.

The need for money is never-ending but if one need extra for an emergency or any investments then one tends to use the short-term or long-term savings ask family or friends or use their credits card. The biggest issue here is that people usually use their credit cards as the first option instead of the third.

Effective Annual Rate is the interest rates that apply to loans but they do not include some of the charges that might be covered by APR.