What are the different APRs?
The different types of APRs are introductory APR, fixed APRs, and variable APRs. An introductory APR is mandated for those newly student credit card holders for a specific period (6 months to one year). Most of the time, the rate offered is low or sometimes 0%; and is applied to all purchases, balance transfers, and cash advances. A fixed APR is a rate that is issued for a long-term period. The company only notifies the card holder if there is a change of rate before it takes effect. This may probably due to long-term economic factors. Lastly, a variable APR is given to a student card holder where the rate is tied to another rate, such as prime rate or Treasury bill rate. Rates may change from day to day. However, this is not applicable to student credit cards.
