Final answer:
The better credit card offer depends on how quickly the balance will be paid off. The first offer with 0% APR for the first 6 months is better if paid off within that time, but the second offer with a constant 16% APR may be more beneficial in the long run if the balance is carried past 6 months.
Step-by-step explanation:
To determine which credit card offer is the better deal between the first offer with 0% APR for the first 6 months then increasing to 20%, and the second offer with a consistent 16% APR, one must consider how long they plan to carry a balance on the card and how much that balance will be. If the balance is paid off within the first 6 months, the first offer is better, as no interest will accrue. However, if the balance is carried beyond 6 months, the 20% APR could quickly outweigh the initial savings compared to the steady 16% of the second offer. It's important to note that credit card offers like these are common and rates can vary significantly; however, with most credit card interest rates ranging from 12% to 18% annually, the offer with a 16% APR is relatively standard. Ultimately, the better deal depends on the individual's financial plans and how diligently they can manage their credit card payments.