Credit Card Guide
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Credit Card Glossary

Puzzled by credit card jargon? Browse the CreditCardGuide.com glossary for the definitions of common and confusing credit card terms.

Variable interest rate

A rate of interest that goes up or down based on what happens with another rate. With credit cards, this determining rate is usually the prime rate, and the variable rate is defined as the prime rate plus a certain number of percentage points. The prime rate varies with the federal funds rate (set by the Federal Reserve). So, if the Fed raises rates, the interest rate on your card will likely increase as well.

 
     


 
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