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March 18, 2013


Choosing a Credit Card

Does the APR on a credit card always stay the same?

Not if there is a variable-rate provision. More and more credit card issuers set APRs that vary with some interest-rate index, such as the market rates on three-year U.S. Treasury bills (T-bills) or the prime rate charged by banks on short-term business loans. These issuers must disclose in their solicitation to you that the rate may vary and how the rate is determined.

>>What information do I have a right to?
>>How should I judge the APR shown in the solicitation?
>>Can I avoid paying a finance charge?
>>Does the APR on a credit card always stay the same?
>>Is there a charge each year for the right to use a credit card?
>>What other fees and charges should I look for on the disclosure statement?
>>In shopping for a credit card, I found that one credit card issuer charges a higher rate than that allowed by my state law. How can that be?

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