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APR stands for Annual Percentage Rate, which is the cost of borrowing rolled into a single percentage rate.
In everyday language, the APR shows:
The interest rate (what the lender charges you for borrowing)
Any extra fees (setup, maintenance, account charges)
…and rolls them together, then spreads that total cost across a year.
Why that matters:
You get one clear number to compare different loans/lenders
That percentage shows you how much you’ll pay, based on how much you borrow e.g. “for every £100 you borrow, you’ll pay £X extra over 12 months.”
Think of it like a concert ticket:
One site shows £50 plus £10 booking and £5 service fees at checkout, while another just advertises a £65 “all-in” ticket. APR is that “all-in” price tag for your loan, so you never get surprised at the till.
At Creditspring, we don’t add on interest or hidden fees, such as late charges. Instead, every cost is wrapped into a single membership fee you pay over 12 months. Here’s what that means for your APR:
APR based on on-time payment We calculate your APR assuming you’ll pay each instalment on time, so we don’t add fees for missed or late payments you will never owe.
No interest charges Unlike most loans, we don’t charge compounding interest (interest on interest until the loan is repaid). All costs are covered by your membership fee which will never increase (even if you take longer to repay). This means, you know exactly where you stand and can really be in control of your finances.
Most lenders advertise a low APR up front, then quietly add on compounding interest and surprise fees. This means you end up paying far more than you ever expected, and the longer you take to repay, the worse it gets.
But at Creditspring, your APR truly covers every cost up front, no hidden fees, no compounding interest, just the one fixed membership fee you see.
Using £200 as an example, let’s compare Creditspring with a typical lender to show how those differences matter:
The key difference?
Traditional lenders: A low APR may seem attractive at first glance, but compounding interest and hidden fees drive up your total cost over time. Always read the small print on the total pounds you’ll repay and any added fees.
Creditspring: Our APR reflects the full cost up front—no small print surprises, no hidden fees and no compounding interest.
With traditional lenders, you could end up paying much more than you expected. At Creditspring, what you see is what you pay, nothing more.
APR can be misleading if you don’t look at the full cost of borrowing in pounds and pence. At Creditspring, we believe in full transparency, our total charges never exceed our membership fees.
No ongoing interest
No late fees
No early repayment penalties
Instead, you pay fixed fees that never increase over time. You will never pay more than 12 monthly fees. Ever.
We believe this is a simpler and honest way of doing business and avoids you getting into a debt spiral.
APR can be a useful comparison tool, but the total cost in pounds and pence matters most. A lower APR doesn’t always mean a cheaper loan, especially if interest is charged over a longer period. With Creditspring, you’ll always know exactly what you’ll pay, making borrowing simple, clear, and stress-free.
Remember: At Creditspring, APR is a rate we calculate, not a rate we charge.
Credit provided by Inclusive Finance Ltd t/a Creditspring. Loans are subject to status, for over 18s only and T&Cs apply.
