What is AER? Close Finance explains
Annual equivalent rate, or AER, allows you to compare the true cost of a loan between different lenders. It is useful because some lenders charge their interest in different ways, so, for example, one lender may calculate their interest on a daily basis, and another lender may calculate their interest on a monthly basis. With the AER rate you are able to see like for like, the true cost of a loan in the long run. If you have got any other questions, come and see us, or give us a call at Close Finance.