What is an introductory APR?

An introductory APR, or annual percentage rate, is a special rate that credit card companies may offer to customers when they first open an account. This rate is usually very low and is meant to entice customers to use a specific company’s credit card. In some cases, introductory APRs can last for an entire year, or even longer, depending on the terms of the agreement between the customer and the credit card company. In California, credit card companies are allowed to offer introductory APRs, although they may be at different rates than other states. This is because credit card laws in California are among the strictest in the country. Companies are limited in the amount of fees they can charge to customers, and they are required to provide information about the introductory APR before customers sign any agreement. It is important for customers to understand the terms and conditions of an introductory APR before signing any agreement, and to be aware of potential fees. Customers should also be aware that when the introductory APR period ends, the rate often increases to a higher rate. Therefore, customers should pay off the balance in full before the introductory APR period ends, to avoid higher interest rates and fees.

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What is an introductory APR?

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