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credit cards faq/glossary
The most common questions asked about Credits Cards.
Credit Card Glossary
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Introductory Rate (intro APR)
What does Introductory Rate (intro APR) mean?

When you choose a credit card option, typically you will also look at the standard APR they will charge you but you take into consideration any other advantages as well. For example, they might give you an offer of a low introductory rate for a determined period (for six months, or for the first year) of 3%, compared to the standard APR which might be 6%. Or, even better there are lending institutions which might offer you an introductory APR of 0 for a period of say six months.

However, you should also take into consideration the standard APR they charge because that is the interest you have to pay for the majority of the term. Introductory rates or “teaser rates” as these are also commonly called are only a way of attracting new customers, who thrilled by the potential of paying no interest rates for 6 months jump into the offer without taking into account that they might charge a very high standard APR after the termination of the introductory period.
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