What are the different kinds of interest rates for credit cards?

Interest rates for credit cards can vary significantly, depending on the type of card and the terms of the agreement. In California, the law states that credit cards must disclose the annual percentage rate (APR) to consumers when they apply for a new card. This rate is the annual rate of interest that will be charged on any balances carried over from month to month. Most credit cards will feature either a fixed APR or a variable APR. A fixed APR is the rate of interest that will remain the same throughout the life of the credit card and can range from 0% up to 30%. Variable APRs are typically higher than fixed APRs, and they can fluctuate depending on market conditions, such as the prime rate set by the Federal Reserve. Some credit cards may also feature a promotional APR, which is a lower rate for a limited time. In addition to the APR, some credit cards may also charge various fees to the consumer. These fees can include balance transfer fees, cash advance fees, late payment fees, and annual fees. Consumers should research the various terms and conditions of their cards to ensure they understand all the costs associated with the card before signing the agreement.

Related FAQs

Do I have any recourse of action if a lender violates the Fair Credit Reporting Act?
What is Credit Card Act of 2009?
What is a balance transfer?
What is a travel rewards credit card?
What is theCard Act of 2009?
What is the Fair Debt Collection Practices Act?
What is a financial institution's liability for unauthorized credit card use?
What kind of protection do I have if I'm a victim of identity theft?
What is a credit card processor?
What is an introductory APR?

What are the different kinds of interest rates for credit cards?

Related FAQs

Related Blog Posts