Variable APR
define: Variable APR
An annual percentage rate that increases or decreases in accordance with the interest rates in the marketplace. A variable APR is often defined as “Prime Rate + an additional rate.” For example, if the rate of a credit card is “Prime rate + 4%,” and the current prime rate is 10%, the APR would be 14%. The prime rate varies throughout the year.
A variable APR is the opposite of a “fixed APR,” which is typically a more stable type of APR. For further information, see variable APRs vs. fixed APRs
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