What is an introductory APR?

An introductory Annual Percentage Rate (APR) is a special rate offered to new customers by credit card companies or other lenders. It is designed to encourage people to apply for the card or loan, by offering a lower interest rate for a limited period of time. In Maryland, the law states that companies offering an introductory APR must disclose the full terms and conditions before the cardholder makes their purchase. This includes the period of time it will be available, such as six months, as well as the rate of the APR after the introductory period ends. The APR must be properly disclosed, along with other information such as annual fees, cash advance fees, and penalty fees. Normally, after the introductory period ends, the APR is adjusted depending on the market and creditworthiness. If the cardholder does not qualify for the best rate, then their APR may be higher than the advertised introductory rate. It is important that Maryland consumers understand the details related to introductory rates so that they can make good financial decisions. Consumers should be aware that the APR may change after the introductory period and make sure they pay off any outstanding balances before the rate expires. When comparing cards and loans, it’s also a good idea to compare all terms and conditions, as well as the interest rate after the introductory period.

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What is an introductory APR?

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