A) Be charged an Annual Fee
B) Qualify for an A.P.R. based on their creditworthiness
C) Pay the same A.P.R.
D) Pay the Penalty A.P.R. of 30.24%
Credit cards often come with an introductory period that may offer benefits such as a 0% Annual Percentage Rate (APR) or waived fees to attract new customers. This period is typically temporary and designed to encourage cardholders to use the card before standard terms apply.
Option A: Be charged an Annual Fee
Platinum cards are premium products that usually come with an annual fee to cover enhanced benefits and services. This fee is commonly implemented after the introductory period ends.
Option B: Qualify for an A.P.R. based on their creditworthiness
While the APR is determined by creditworthiness, this is a standard practice that applies from the outset, not specifically after the introductory period.
Option C: Pay the same A.P.R.
Introductory periods often feature promotional APRs that differ from the standard rates applied afterward. Therefore, the APR typically changes post-introductory period.
Option D: Pay the Penalty A.P.R. of 30.24%
Penalty APRs are usually imposed only when a cardholder violates terms, such as making late payments. This is not a standard outcome for all consumers after the introductory period.
Given that platinum cards commonly charge an annual fee to provide premium benefits, and this fee is typically applied after any introductory offers have concluded, Option A is the most accurate choice.
An annual fee is a yearly charge that credit card issuers impose for the benefits and services associated with the card. Premium cards like Platinum often include perks such as travel insurance, concierge services, and rewards programs, which justify the higher annual fee compared to standard cards.
The APR represents the interest rate charged on outstanding balances. It can vary based on the cardholder's creditworthiness and the terms set by the issuer. Introductory APRs are often lower or 0% to attract new customers, after which the standard APR applies.
A penalty APR is a higher interest rate applied when a cardholder violates the terms of the credit agreement, such as making late payments or exceeding the credit limit. This rate serves as a deterrent against delinquent behavior and compensates the issuer for increased risk.
Creditworthiness assesses an individual's ability to repay debts, influencing the APR offered by credit card issuers. Factors include credit score, income, debt levels, and credit history. Higher creditworthiness typically results in lower APRs and more favorable terms.
Certainly, here are four questions similar or related to the one you provided, formatted as per your request:
Similar Questions
A) Pay the same A.P.R.
B) Qualify for an A.P.R. based on their creditworthiness
C) Pay the Penalty A.P.R. of 30.24%
D) Be charged an Annual Fee
After the introductory period, the A.P.R. for the Platinum Card is determined based on the consumer's creditworthiness, meaning those with better credit profiles may receive more favorable interest rates.
A) Purchases
B) Balance Transfers
C) Cash Advances
D) Introductory Offers
Cash advances usually carry higher A.P.R.s compared to regular purchases or balance transfers, making them a more expensive option for accessing cash through a credit card.
A) A decrease in credit limit
B) An increase in reward points
C) Application of a Penalty A.P.R.
D) Waiving of annual fees
Missing multiple credit card payments can trigger a Penalty A.P.R., which is a higher interest rate applied to your account, increasing the cost of carrying a balance.
A) A permanent low interest rate
B) A temporary low or 0% interest rate for a set period
C) A high interest rate that decreases over time
D) An interest rate that varies daily
An introductory A.P.R. is a promotional interest rate offered for a limited time, after which the standard A.P.R. applies. It's important to understand the duration of this period and the rate that will follow.