(APR) short for Annual Percentage Rate is the yearly cost you owe to borrow money, including fees. This includes more than just interest rates, but also other fees that affect the overall cost of borrowing such as credit insurance. The APR is a better way to measure the total cost of borrowing money since it includes a broader range of factors that affect this. credit carda plastic card that you use to purchase things and borrow money, or pay off your debts. Credit cards can have annual percentage rates of 20% or more.