Various APR's of the Chase Freedom(SM) Cash Visa(R) Card

Duran Mueller
Jun 29, 2007
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The Chase Freedom(SM) Cash Visa(R) Card offer terms mention the APR as 14.24 variable. However a look at the terms and condition of this card and you find that there is a lot more to the APR's than this figure. Let us analyze it a bit more.

APR stands for Annual percentage rate. It is the interest rate that credit card companies charge on the outstanding balances. The first thing to note is that the APR is available for three different pricings. The Elite, the Premium and the Standard. The APR varies for these three pricing range. The Chase Freedom(SM) Cash Visa(R) Card has a 0% fixed APR for the first 6 billing cycles for the Elite and Premium pricing. After this 0% intro APR period is over the APR will change to 14.24% variable for Elite pricing and 18.24% variable for Premium pricing. The main point to note here is the APR's for Standard pricing. For this category there is no 0% intro APR period and the APR rate is 23.24% variable from the day of account opening.

The credit card issuing company first considers for the pricing with the lowest rates. Depending on a review of your credit history and other information a person can get the Chase Freedom(SM) Cash Visa(R) Card at the lowest rates or alternative rates. The credit card company if finds that a particular applicant is not suitable he or she might not be allowed to open an account.

The second thing to note is that all these APR's except the 0% Intro APR are variable. A variable APR means that it can vary over a period of time. The variable APR is tied to the prime rate. The "Prime Rate" is the highest prime rate published in the Money Rates column of The Wall Street Journal two business days before the Closing Date on the statement for each billing period. Variable APR's are based on the 8.25% prime rate on 07/05/2006. The variable APR is an APR rate added to this prime rate subjected to certain minimum.

In addition to the above APR's the Chase Freedom(SM) Cash Visa(R) Card comes with the following APR's

Balance Transfer APR:

Elite and Premium Pricing: A 0% fixed APR for the first 6 billing cycles following the opening of account. After that, 14.24% variable for Elite Pricing, or 18.24% variable for Premium Pricing. Standard Pricing: A 0% fixed APR for the first 3 billing cycles following the opening of your account. After that, 23.24% variable.

Cash Advance APR:

Elite and Premium Pricing: 24.24% variable. Standard Pricing: 28.24% variable.

Default APR:

Up to 32.24% variable.

The issuers of Chase Freedom(SM) Cash Visa(R) Card can apply the default APR in any of the following cases:

If the credit card company doesn't receive, for any payment that is owed on this Account or any other account or loan with us, at least the minimum payment due by the date and time due

If the card holder exceed your credit line on this Account.

If a cardholder makes a payment to the issuing company that is not honored by the cardholder's bank.

By now it might be obvious to you how important it is to read the terms and conditions of any credit card before deciding on it. This can give you a fair idea about how your APR will vary, when you use the credit card. This can save a lot of frustration and money for the credit card holder.