What is an introductory APR?
An introductory Annual Percentage Rate (APR) is an introductory rate offered by credit card companies as an incentive for customers to use their cards. This rate is often lower than the regular APR and can help customers save money on their credit card debts if they pay their balance off within the designated timeframe. In Georgia, the introductory period ranges from six to 12 months. The credit card company must provide an introductory APR that is clearly explained to the customer before the customer can accept the offer. This must include reasonably understandable terms and conditions and must include the length of the introductory period, the interest rate, and any applicable fees. The customer must be informed of the fees and interest rates that will apply after the introductory period so that they can make an informed decision. At the end of the introductory period, the APR may increase significantly, so customers need to be aware of this and try to pay off their balance as quickly as possible. If customers do not make their payments on time, they may incur late fees and other penalty rates. This can be an expensive mistake since the customer will then have to pay off the balance at a much higher interest rate.
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