Intro APR vs. regular APR

When applying for a credit card, pay attention to the different interest rates that come along with the offer. Two of the most important: the intro annual percentage rate (APR) and the regular APR.

define: Intro APR
An introductory, or intro, APR is the interest rate attached to purchases and/or balance transfers on a credit card for a specified period of time. After the initial intro period, the APR will increase to the regular APR associated with the card.

define: Regular APR
Also known as the “ongoing APR,” the regular APR is the interest rate that is attached to the card after any introductory periods (if applicable) end.

Both the intro APR and regular APR are important numbers to know. Not all offers will have an introductory rate, but if you do choose one that does, be sure to know the terms of the intro offer. What will the rate go up to after the intro period? How long will the intro period last? Low introductory APR offers can be useful for those that plan to carry a balance for a short period of time before paying it off.

Choosing a credit card with a low regular APR, as opposed to one with a low intro APR (and then a higher regular APR), may be a wise choice for those that plan on carrying a balance long term. In this scenario, opting for low regular APR card can result in more savings over time.

See also: Fixed APR vs. variable APR