What is a variable rate credit card?

A variable rate credit card, also known as a variable APR (annual percentage rate) credit card, is a type of credit card that has a fluctuating interest rate. The rate is usually linked to an index, such as the prime rate, and is subject to change with the market. This means that if the index rate goes up, your interest rate will also go up. In Florida, the law states that a lender must notify cardholders at least 45 days in advance if they plan to increase the interest rate. This gives cardholders enough time to prepare for the increase in their payments. The lender must also provide an explanation of how the rate was calculated, the date on which the rate increased, and the amount of the new rate. Both fixed rate and variable rate credit cards can be beneficial in different scenarios. With a variable rate card, you may be able to secure a lower rate when rates are low, resulting in lower monthly payments. However, it is important to be aware that the rate is subject to change and could increase as market indices change. For this reason, it is important to closely monitor the interest rate on your card and keep an eye on the market.

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What is a variable rate credit card?

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