Your complete A to Z guide to credit

It can be hard to navigate the credit minefield, which is littered with technical terms and governed by rules many of us don't understand. This guide is a route planner that will take you from A to Z.

A is for APR

This stands for annual percentage rate and is the true cost of a deal, including fees and charges as well as interest, over a year. As it includes everything you pay, it can be higher than the interest-only rate.

Adverts tend to cite the 'typical' APR, which is what at least two thirds of successful applicants will pay – you may be given an offer of more or less than this figure, depending on your credit status.