What is the difference between an intro APR and a regular APR?

Regular APR vs. introductory APR

An introductory annual percentage rate (APR) is a temporary, low APR that lasts for a specified amount of time and is attached to a specified type of transaction.

For example, a credit card may offer an introductory 0% APR on purchases for a period of 12 months. This means that all new purchases made with the card for the first 12 months will be attached to a 0% interest rate. There are two things to note in this example:

• In the above example, the introductory APR is only attached to purchases, so other transactions made with the card, such as balance transfers or cash advances, will be attached to different APRs (not the 0% APR).

• In the above example, the APR on purchases will convert to the ongoing (or regular) APR once the initial 12-month period is over. The regular (also called ongoing) APR is usually much higher than the introductory APR.

A regular APR is a non-introductory interest rate that is applied to balances on a credit card. Regular (or ongoing) APRs are usually listed as either fixed or variable.

It is important to note the differences between introductory APRs and ongoing APRs when deciding which credit card to apply for. Depending on your specific situation, a card with a low introductory rate may or may not suit your needs. If you do opt to apply for a credit card with a low introductory APR, be aware that the APR will jump to a higher rate after the intro period ends.

However, if you plan on carrying a balance on the credit card for long period of time, applying for a credit card with a low regular APR may be a wiser choice, as the APR will usually stay more consistent over time.

For more information on this topic, see Introductory APR cards vs. low regular APR cards