What is an introductory APR?

An introductory Annual Percentage Rate (APR) is an interest rate that is often initially offered to credit card holders when they open a new card account. This rate may be lower than the regular interest rate that is applied to purchases and balance transfers. The introductory APR is typically valid for a limited time, such as the first 6-12 months after the card is opened. During this period, card holders will not have to pay any interest on purchases and balance transfers. In Alaska, some credit card companies must disclose the introductory APR on promotional cards or card applications in order to comply with state regulations. This disclosure must include the introductory APR, the period of time during which the rate will be in effect, and how the rate will be applied to purchases made during the introductory APR period. While introductory APRs can offer card holders a chance to save money in the short term, it is important to read the fine print before opening a card account. This is because the introductory APR may be replaced by a much higher rate once the introductory period ends. It is also important to pay off all balances before the end of the promotional period in order to take full advantage of the introductory APR.

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What is an introductory APR?

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