ChargeItTypes of APR
Further Reading
Fixed APR
A Fixed APR does not change often. The credit card company must notify you of any changes that occur in 15 days. This APR can go up when interest rates rise but change is not automatic. Generally this form of APR is ideal and very reliable.
Variable APR
Variable APRs change based on an index like the Prime Rate or LIBOR. These are governed by annual (yearly) terms. It can be difficult to notice changes that occur. Your rate can change without notice and very fast. Variable APR is less than ideal but very common and difficult to avoid.
Tiered APR
Tiered APRs change in relation to the balance in your account. Depending on your account, you might have a higher APR with a higher balance. For example, if your balance is between 0$ and 2500$ your APR might be 12% but if your balance is higher than 2500$ it rises to 15%. Tiered APR should be avoided because of its higher APR charges.
Default (Penalty APR) 
Default APR, often called Penalty APR, is the APR you would pay as a penalty for missing or making late payments. This is usually outlined in the agreement between you and your credit company. Here is an example, “All your APRs may automatically increase up to the Default APR if you default under any cardmember agreement that you have with us because you fail to make a payment to us when due, you exceed your credit line, or you make a payment to us that is not honored.” Quicken Terms & Conditions.
Default APR is avoidable if your responsible and keep the following in mind:
- Make payments on time
- Do not go over your credit line
- Make sure payments will go through
- Pay more than the minimum each month