What is a credit card revert rate?

Introductory rates on credit cards don’t last long, so before the introductory period is finished, make sure you’re aware of the revert rate!

Have you ever considered doing a balance transfer on your credit card to access a lower interest rate? It’s a popular thing to do.

Financial institutions know that balance transfers are popular (plus being an easy way to attract new customers).

So what’s not to love about it? Well, like most good things, that low rate doesn’t last forever – enter the revert rate.

What is a credit card revert rate?

The credit card revert rate is the interest rate that your new credit card will revert to once the introductory rate is finished. The revert rate is the interest rate that will be charged on any remaining debt that you have not yet managed to pay off during the interest free (or low interest) period, and any additional purchases you make. The revert rate is usually much higher than the introductory rate.

Why is the revert rate so important?

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Because, if you don’t pay off your debt in full within the balance transfer or introductory rate timeframe, you’ll be paying the revert rate in interest – and it will not be cheap.

The idea is to pay off your debt in full within a required timeframe, right? Of course, plans don’t always work out, for one reason or another. So it always pays to be aware of what rate of interest your chosen credit card reverts to once the promotional period is over. Otherwise you may find yourself accruing a bit more debt than you would have liked.

The revert rate is useful in that it can give you the motivation to ensure you pay off that old debt within the introductory period.

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