What is the Interest Rate?

Interest rates are advertised in two different forms. There is the interest rate and also the comparison rate.

The plain Interest Rate is often misleading as it does not take into account fees and charges.

The Comparison Rate takes these fees and charges into account.

Interest rates are not the only cost to a loan; also ask about the 'comparison rate' ongoing fees and other charges and costs such as establishment fees, which will range from $0 to about $1000, and early payout penalties.