What Are the Different Kind of Interest Rates that Can Be Offered on Credit Cards?
There are several different types of interest rates to consider when selecting a credit card that best suits your interests: • Fixed APR – this simply means that the interest rate on your credit card will remain constant until the credit card company decides to change it. Keep in mind that the company can change the APR at any time, even if the sales pitch says “fixed for life” • Variable APR – the interest rate in this case is connected to the prime rate or some other kind of index. The rate varies as the index does, so that your interest rate will rise and fall in accordance to the movement of the index • Teaser or Introductory APR – this is usually an interest rate the credit card company offers as a promotion for customers to apply for that particular credit card.
