What is the distinction between a fixed and variable APR?
A fixed APR differs from a variable APR in that it does not vary in response to changes in an index. A variable-rate APR, often known as a variable APR, varies with the index interest rate.
A fixed-rate APR or fixed APR establishes an APR that does not vary in response to changes in an index. This is not to say that the interest rate will never rise, but the issuer must normally tell you before the change occurs, and in most cases, the higher rate will apply only to purchases and other transactions made after you get the notification.
A variable-rate APR or variable APR varies with the index interest rate, such as the Wall Street Journal prime rate. The cardholder agreement will specify how the APR of a card might alter over time.
You should be able to locate a copy of the agreement on your card issuer’s website, and if not, you may request one from your card issuer. If you have any questions, please contact your credit card company.