Annual percentage rate, or APR, is essentially the annual cost of borrowing—as in the case of an investment like a loan or credit card—and is expressed as a percentage. It differs from an interest rate in that it includes other fees associated with borrowing, such as origination fees and closing costs. There are multiple types, such as promotional APRs, variable, and non-variable APRs. The lower the APR, the lower the cost of borrowing. Having a high credit score can help you get a lower APR.