Introduction
The use of credit is quite frequent among individuals and organizations. Individuals may need to get credit in order to fulfill their needs. These needs may be of different kinds like education, wedding, medical treatment etc. However, the usage of credit is seen much in the case of organizations and the companies. This credit basis of transactions is usually adopted by many organizations and the companies. It is seldom seen that some organization or the company is running without the involvement of the credit basis of transaction at all the levels of organization. Whenever the people or the organizations get the loans and credits, they need to pay the interest along with the principal amount during the course of repayment.
Credit APR is the annual percentage rate of credit. This is the rate which is to be applied to the principal amount. By applying the credit APR to the principal amount, the amount of the interest can be calculated. Credit APR may be dependent on many factors. These factors may include the money rate of return, real rate of return and the inflation effects. Credit APR may also be calculated according to the market in which the credit is being issued. As the name tells credit APR is the annual rate for the repayment of the loan and this is the rate which is applied to the principal amount in order to get the annual amount of interest, which is to be paid on the repayment of the credit.
Credit APR does not remain same all the time. There are many factors which play an important role in the calculation and fluctuation of Credit APR. Sometimes the changing inflation rates may cause the Credit APR to change significantly as inflation is also given importance while calculated Credit APR. The change in the inflation rates in dependent on the economic conditions of the country. If the economic conditions of the country are poor, then the inflation rate would be adversely affected. It will be increased and hence causing the Credit APR to increase as well. However on the other hand if the country is passing through the economic prosperity, then the inflation rates show a positive variance and hence cause the Credit APR to show positive variance as well.
In order to find the best Credit APR from different financial institutions prevailing on the market, a comparison analysis can be done. In this analysis, one can compare the Credit APR of different debt providing firms. By comparing different Credit APR of different debt providing firms, one can figure out the best Credit APR.
