What is an introductory APR?
An introductory Annual Percentage Rate (APR) is a rate that is offered by credit card providers for a limited time period, usually between six and 12 months. It typically applies to purchases made with the card, as well as balance transfers, but it may also include cash advances. During this period, the card issuer will charge a much lower rate than would be normally applied, allowing cardholders to save money on interest payments. Once the introductory period is over, the card issuer will revert to the original, and usually higher, rate. It’s important to note that introductory APRs are sometimes limited to new customers, or to those who have requested a promotional offer. Many credit card providers also offer variable APRs, meaning that the rate can change over time, depending on the overall market rate. It’s therefore important to read the terms and conditions of the card carefully, so that cardholders know exactly what they will be paying.
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