APR Basics
- Different APRs for purchases, cash advances, and balance transfers. Cash advances and balance transfers typically have higher APRs than for purchases.
- Distinct levels of APRs are common among credit cards. For example, higher rates are applied on balances containing $1-$500 and on balances greater than $500.
- If you are delinquent in making credit card payments, a penalty APR will apply. In this instance, it is vital to read your credit card agreement.
- An Introductory APR which means a different rate will take effect after the initial rate expires.
- A different rate will be used in the future, or a delayed APR. Be mindful of when the APR will change.
- A fixed APR indicates that the annual percentage rate does not change, or does not fluctuate often. If the APR does change, the credit card company must inform you before altering it.
- A variable rate implies that the APR changes from time to time. This occurs because the rate is tied to another interest rate, such as the prime rate. Consult your credit card agreement for information on APR changes.
