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Whats the difference between variable-rate and fixed-rate cards?

April 26, 2017cards fixed-rate variable-rate

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Whats the difference between variable-rate and fixed-rate cards?

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Variable-rate cards have APRs based on financial indexes such as the Prime Rate or London Interbank Offered Rate (LIBOR). When the index decreases, so does the interest rate on your card. Your annual percentage rate (APR) is a combination of the index and a previously disclosed number of percentage points. A fixed APR doesn’t vary based on index rate fluctuations.