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Variable Interest Rate

A variable interest rate on a credit card is an interest rate that is not fixed and is subject to fluctuation.

Variable interest rates typically adjust along with changes in federal and key interest rates, but could also adjust along with changes in the consumer’s credit profile. Because of this, the consumer could be caught in a situation where the variable interest rate will increase dramatically in a short period of time.

In most situations, credit cards with variable interest rates will have higher interest rates than a card with a fixed interest rate.

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Less than $2,500 More than $2,500
Always Never Sometimes