What is an introductory APR?

An introductory APR (Annual Percentage Rate) is a type of interest rate that is offered by credit card companies. It is typically lower than the standard APR, making it attractive to potential customers. In Montana, credit card companies must disclose the introductory APR, as well as any associated fees, prior to the customer agreeing to the terms and conditions. The introductory APR applies for a limited period of time, which can range from three to twelve months. After this period has expired, the credit card company is free to reset the APR, which could be higher than the introductory rate. In addition, most credit cards have a variable rate, meaning that the APR can change based on factors such as changes in the prime rate or economic conditions. It’s important to understand that an introductory APR is not the same as a promotional offer, which usually comes with an additional bonus or reward. With an introductory APR, you will need to pay interest on any balance that is not paid in full by the end of the introductory period. When considering an introductory APR, it is best to read the credit card’s agreement carefully to understand what fees and charges are associated with it. As a consumer, you should always shop around to find the best rates and terms, and be aware of the potential risks associated with any offer.

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What is an introductory APR?

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