Low Fixed APR Credit Cards – Are there any fixed rate credit cards?
Most credit card conversions are brought about by the rising interest rates.
These conversions often create confusion to consumers especially those who are carrying balances on their cards.
Like most credit cardholders, you cannot help, but ask what causes interest rates to rise, and what to do to avoid them.
At this point, you need to have some knowledge regarding interest rates, especially the fixed and variable interest rates.
Understanding Interest Rates Variable Rate Credit Card Vs. Fixed Rate Credit Card Offer
- Variable Interest Rates
Credit cards with variable rate are commanded by an index, which is usually the prime rate.The card rates comparing with the prime rate are commonly higher, and the difference between the actual rate and the prime rate is known as the margin.
We can consider variable interest rates as consumer friendly at the time when prime rate is going down.
However, during that time, banks usually place a floor rate in card agreements in order to ensure profit.
- Fixed Interest Rates
If variable rates are based on prime rate, fixed interest rates are not.This means that whether the prime rate goes up or down, card with fixed rate would stay the same.
However, what consumers should know is that fixed rate credit card may be increased from time to time as long as the issuers provide at least 15 days notice.
In addition, fixed rate cards can be changed eventually to variable rated cards.
High Credit Card Interest Rates Avoidance
- High finance charge is a direct result of high interest fee, which leads too many concerns of cardholders.
Fixed rate credit card is a tool in avoiding high interest rates although at a limited capacity.
Experts suggest low interest rate credit cards as another option to avoid the effect of high interest.
Credit cards with low interest are also good alternative to balance transfer cards, most especially if you do not intend to chase for promotional rates all the time.
Today, several card issuers offer cards having rates lower than ten percent.
However, the people that can take advantage of these offers are those with good to excellent credit.
- Platinum Fixed Rate Card (Co-operative Bank)
This fixed rate credit card has 9.9-percent APR that is fixed for 5 years, and reverts to 12.9-percent APR. It has no annual fee.
- Capital One Click Credit Card
This card is designed for online shoppers.It has access to superior brand discounts, and has interest rate of 9.9-percent on balance transfers, purchases and card withdrawals.
The card provides unlimited access to rewards in fashion, lifestyle brands and travel.
- Barclaycard Platinum Visa
This card offers zero-percent interest for twenty-two months on balance transfers.
It also gives zero-percent interest for three months on purchases.
The rate is at 17.9-percent APR.
- Sainsbury’s Credit Card
Nectar (American Express) cardholders can avail of low interest rate card at a rate of 6.9-percent APR, and no fee on balance transfers.
- Advance Credit Card (Lloyds TSB)
This card is the perfect shopping partner.It has a zero-percent introductory offer for six months on purchases.
The interest rate is at 11.9-percent APR.
The card requires stay within the credit limit as well as to make payments on the balance due on time.
Low interest and fixed rate credit card is great option if you are carrying a balance in your account in order to maintain low interest.
Just like other credit cards, paying your balance on time is still the best way in ensuring low interest fees.