What Does APR Variable Mean on Credit Cards?

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Variable APR, or annual percentage rate, on a credit card means that the credit card company can change the interest rate on the card at any time for any reason. Check the small print on a credit card agreement to learn why a credit card company may change the APR with help from the owner of a debt settlement company in this free video on credit cards.

Part of the Video Series: Credit Card Debt Information
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Video Transcript

Hi. My name is Peter Repak. I'm the owner of Clear Financial LLC, a debt negotiation company. What does APR variable mean on credit cards? APR stands for annual percentage rate. Variable means, they can do what ever the heck they want. Meaning, if you have a credit card offer for zero percent; variable on that means, they can change your annual percentage rate, that means how much interest you're going to pay on your credit card, as they please. They can change it if you miss on your payment. They can change it if you have excessive debt amount. They can change it if you are late on your cable bill because there is something which is called the universal default clause. Please check on this law. They actually can do that. They can change your annual percentage rate, your interest rate on your credit card for just about anything. Even if you look at them in the wrong way, they probably can do it. But of course there are some laws that guide them on this. But variable means simply they can make changes on your credit card interest rate as they please. Whatever their policies is. My name is Peter Repak. I'm the owner of Clear Financial LLC, a debt negotiation company. Thank you for watching.

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