What is an Introductory APR?

Posted by Tom Wilkins on Fri 13th July 2007 at 06:00 AM, Filed in Glossary

An introductory APR is:

“A temporary, usually low, interest rate (expressed as an annual percentage rate) offered by providers to “introduce” you to their services. It will usually expire after a certain amount of time and may often be terminated based on your behavior, such as if you make a late payment or exceed your credit limit. Be sure to check the details of the offer for any limitations on an introductory APR.”

This is one term you should always check very carefully in the small print. What may look like a great deal, could have a sting in the tail after the lapse of the introductory APR deal. You have been warned!!

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