What is a variable rate credit card?

A variable rate credit card is a type of credit card that has an interest rate that fluctuates with the market. The interest rate on a variable rate credit card can change over time, depending on the market or the lender’s discretion. In Oregon, the Oregon Unfair Credit Practices Act allows credit card companies to change the interest rate on your card when the terms of your account change, the prime rate changes, you make a late payment, or you go over your credit limit. Variable rate credit cards are not for everyone, as the interest rates could be significantly higher than fixed rate cards. The rates on a variable rate card usually start lower than fixed cards, but can quickly increase over time. Therefore, it is important to understand the terms of your account and calculate whether the benefits outweigh the risks of a variable rate card. If you are considering getting a variable rate credit card, you should know that the Oregon Unfair Credit Practices Act requires credit card companies to provide consumers with timely notice of rate changes so they have time to make informed decisions. Knowing the laws in Oregon will help you make smarter choices and protect yourself from unfair credit practices.

Related FAQs

What is the difference between a secured credit card and an unsecured credit card?
What is a chargeback?
What are the benefits of using a credit card?
What is a credit score?
What is a fixed rate credit card?
What is a balance transfer?
Do I need to provide personal information to get a credit card?
What kind of protection do I have if I'm a victim of identity theft?
How do I apply for a credit card?
What happens when I miss a credit card payment?

What is a variable rate credit card?

Related FAQs

Related Blog Posts