Are Fixed Rate Credit Cards Available?
Fixed rate credit cards are nice to have. These types of credit cards are perfect for anybody. For people who carry a balance every month it only makes sense to have a low interest rate. It gives you the opportunity to get ahead and pay down the balance on your card without paying a lot of interest. These cards are a little trickier to get approved on then most. A low rate credit card is usually for those who have good credit and a history of making payments on time. The majority of people in this category typically pay their whole bill off from month to month and are considered low risk by the banks. Many people only have them to get the rewards. If you have bad credit then you need to work on you’re credit report so you can get approved. When you get approved you can expect interest rates 5% less than most cards. Imagine if you could go from paying 18% to 2% and how much of a burden would be lifted from your shoulders. The banks will have stipulations in the agreement that you pay your bill on time or you risk losing the low rate.
A rule of thumb when selecting a card is to go with a fixed interest rate than that of a variable rate. When doing your research make sure you go through and find out if there are any fees involved. Remember that even though you might have a low percentage on your card, a fee should be interpreted as interest because its not going to your balance. Paying off you’re entire balance is the way to go. There is no reason to be giving your money away to big banks. If you can’t pay in full for the item think about if you really need it.
With the low rate you can work towards being debt free. Putting extra money on top of the minimum payment can save a ton of interest. Whatever you use the card for don’t forget to stay within the guidelines of the contract. Late payments and keeping your balance over 50% of your limit are factors which could break the rules imposed on you. Always apply for a low apr credit card. It might not have a good reward program or even one at all, but its nice to know that if you ever where in a jam financially you have the calmness of mind knowing your not giving a large amount of money to the banks for nothing.
