Brex Learning Center


Variable Rate

A variable rate is an interest rate that fluctuates over the loan term. Unlike fixed rates, which remain the same for the life of the loan, variable rates change based on an index or underlying benchmark interest rate that changes periodically. Variable rates can be beneficial for borrowers, as their interest rates fall when the index or underlying interest rate declines. However, if these rise, then the interest rates will increase.

Virtual Card

A virtual card is an online credit card linked to a customer's credit account. The virtual card randomly generates a one-time-use card number, which may expire after a specific period. The user can enter these details at online checkouts to make purchases instead of inputting their physical credit card number. Card issuers tend to offer virtual cards as free services to their customers. This helps to reduce the risk of credit card fraud, as each virtual card number is only valid for one transaction, rendering them useless to fraudsters.