What is a 'typical' APR?

Most lenders quote a "typical" APR in their advertising. This is the APR it will offer the majority of borrowers but not all. The typical APR will be offered to at least 51% of borrowers.

Somewhere in the small print you should find the phrase "APR subject to status", which essentially means that once the lender has looked at your actual circumstances you might not qualify for the typical APR.

The lender will assess your income, how much you can afford to repay, the relative security of your job, whether you're on the electoral roll and your credit history and will offer you an APR it feels is applicable to you.

If you don't fit a lender's ideal customer profile, the APR you are offered will typically be higher than the advertised rate.