Purchase APR, Default APR?

Question

I just applied for a card, and have a question.

I have introductory APR 0%, and then after the introductory period (6 billing cycles), Purchase APR says "Prime Rate plus 2.99%, currently 7.99%.

And Default APR

The prime rate plus upto 23.99%, currently 28.99%

what does this all mean??

Answer 1

The default rate is what you have to pay if you do not stick to the terms of the agreement.  It should say what constitutes a default.  If not, call customer service and ask.  Frequently, what it means is that if your payment is even one cent below the minimum or one day late or you go one cent over your limit, BANG, your rate goes up to the default rate and stays there forever.

Then there is the concept of "universal default" where they check your credit history every once in a while and, if you are reported by anybody as missing a payment, BANG, your rate goes up to the default rate and stays there forever.