Unlike a fixed interest rate, which remains constant, a variable interest rate can change over time. Most credit cards have variable interest rates tied to the U.S. prime rate or a similar benchmark. Here’s a complete definition of a variable interest rate, how it affects your credit card debt, and how you could avoid credit card interest altogether.

Simply put, a variable interest rate is an interest rate that can change over time. Variable interest rates are generally tied to an underlying index, such as the U.S. prime rate. A variable APR is a similar concept, although an APR can be slightly higher …
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