What is a variable rate credit card?

A variable rate credit card is a type of credit card offered by some banks and credit unions that allows for an adjustable interest rate. Variable rate credit cards have an interest rate that fluctuates with the market, meaning it can rise or fall depending on the state of the economy. This means that the interest rate and associated fees may change over time. In Illinois, variable rate credit cards are regulated by the Illinois Credit Card Act. This law outlines different details about how credit card companies must operate and the rights of consumers using their cards. It also states that any credit card that is issued with a variable rate must be clearly disclosed to the consumer before they agree to accept it. The Fine Print Disclosure Act also requires credit card companies to provide cardholders with written notification of any changes in rates and other terms related to the card. The variable rate credit cards can be beneficial to consumers with excellent credit, since the lower rates can help save money on their debt. The risk is that if the market shifts and interest rates go up, the credit card debt can become considerably more expensive. Before accepting a variable rate credit card, it is important to consider your current financial situation and ability to manage money if the rate increases.

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What is a variable rate credit card?

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