What does Variable Interest Rate mean?
Whenever applying for a credit card, you need to pay attention to the annual percentage rate they charge and especially whether it is a fixed or a variable rate. The major drawback of a credit card loan is the interest rate one has to pay, that is why falling behind with your payments has to be avoided at all costs. The more one falls behind with the payments, the greater the interest rate one will have to repay.
There is always a base rate, or a prime rate set, and the variable rate of different issuers changes in accordance with the change of the prime rate. So, the first months you may be paying a 19% APR, but as the market fluctuates and the base rate changes you may be paying 21% APR for your credit card. The exact opposite of variable interest cards is the fixed rate cards, which has a set interest rate which does not change over time (however, issuers have the right to raise that interest with prior notice).