01-01-2014 12:27 PM
So in the T&C for Nasa FCU Visa Platinum Advantage Rewards it states this...
|Annual Percentage Rate (APR)* For Purchases||9.9-17.99 when you open your account, based on your creditworthiness. After that, your APR will vary with the market based on the Prime Rate.|
When I was approved it said this....
Visa Platinum Advantage Rewards
So, do I have a fixed at 10.9 or is it a variable ?
I don't understand the verbage in the terms...."After that, your APR will vary with the market based on the Prime Rate."
what does after that mean?
01-01-2014 12:42 PM
Typically this works by defining a margin or offset.
If the prime rate is 3.25%, and your rate is 10.90%, then the margin is 7.65%, which will be added to the prime rate at any point to determine your APR.
So if the prime rate goes to 5%, the APR would be 12.65%.
How often the APR is reset (monthly, quarterly, etc.) depends on the T&C.
01-01-2014 02:32 PM
It is a variable rate. The spread (or range if you would) is what is stated on the above information, this basically assigns the applicant the applicable rate depending on creditworthiness factors. Their lowest APR appears to be 9.9% (which is variable), you were assigned just one point higher at 10.9%, which is also variable. It's still by far a great APR. When the Feds make any changes (if any in the foreseeable future), then those would be visible with your APR.
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