Question

Reading through a credit card disclosure (aka the Schumer Box), you see the A.P.R. for a specific card is set at 9.99% - 23.99%. Which of the following statements is probably TRUE?
a. When given a range of A.P.R.s like this, you can assume most cardholders pay the lowest rate listed
b. One of the primary factors determining your card's A.P.R. is your credit score
c. With credit card A.P.R.s, cardholders like higher A.P.R.s because they earn more
d. The A.P.R. on credit cards is usually fixed so they won't be adjusted as long as you are a cardholder

Answer 1

If the A.P.R. for a specific card is set at 9.99% - 23.99%, it shows the range of the A.P.R bank is offering for the card. It means the A.P.R. can be any % between 9.99% and 23.99%. The A.P.R. is decided on the basis for the credibility of the borrower. The credit score of the borrower is the factor to determine the credibility of the borrower. Hence the A.P.R of the card is determined on the basis of the credit score of the borrower.

Hence, the correct answer is:

b. One of the primary factors determining your card's A.P.R. is your credit score