Common use of Variable Rates Clause in Contracts

Variable Rates. A variable DPR and APR will be used to calculate the interest charge applicable to your account, after the expiration of any applicable introductory rate period. The APR will be based on the value of an index. The index will be the highest U.S. Prime Rate published in the Money Rates section of The Wall Street Journal on the first business day of each month. This Prime Rate is a reference index and is not the lowest interest rate available. If The Wall Street Journal does not publish the U.S. Prime Rate, or if it changes the definition of the U.S. Prime Rate, we may substitute another index, subject to applicable law. To determine the APR that will apply to your credit card, we will add a margin to the value of the index. The current range of APRs that can apply is disclosed in the Disclosures. The margin and the corresponding APR applicable to your account will be stated in a Credit Voucher provided to you when you open your account and thereafter in Credit Vouchers or notices, and may depend on your credit qualifications, income, credit or employment history, product selection, or participation in a BECU rewards program. Your APR can change on the first business day of the billing cycle each month, based on the index rate in effect as of the first day of the prior calendar month. Increases or decreases in the U.S. Prime Rate will cause increases or decreases in the APR, resulting in increases or decreases in the interest charge, which in turn will affect the number of monthly minimum payments that are required to repay the interest due. There is no limit on the amount by which this variable APR can change in any month.