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.
