Confused about Fixed Rate Credit Cards?
A Credit Article Contributed by Annie Bauers
What is a Fixed Rate Credit Card?
A fixed rate credit card is a credit card where the interest rate won't change. Sometimes you apply for a credit card with a very low rate only to later discover that the low rate is not a fixed rate on the credit card. That means it can go up. If you not read your credit card application closely hidden fees and interest rate changes could be in there so be careful and read all the way through your credit card application.
If you don't have a fixed rate on your credit card the interest rate you pay could change. Chances are that the interest rate on your credit card is not going to go lower so secure a fixed rate on your credit card to insure that there are no surprises in the future!
Does a Fixed Rate Credit Card Work to My Advantage?
A fixed rate credit card can work to your advantage especially if you are able to secure a very low interest rate on your fixed rate credit card. Sometimes the interest rate you pay on your credit card can change. If you have a fixed rate credit card this rate will not change.
If your interest rate changes on your credit card you could wind up paying more than you currently are on the credit card and even though you have charged the same amount if the interest rate is not a fixed rate on the credit card you can find yourself paying more for the same payment. If you are not sure if you have a fixed rate on your credit card pay attention to the monthly interest rate that is listed on your credit card statement.
If you don't have a fixed rate on your credit card you might yourself in a financial fix so take the time to investigate.
What If I Find a Lower Rate Than My Fixed Rate Credit Card Has?
If you find a credit card with a lower rate than the one on your fixed rate credit card there may or may not be anything you can do. You could try to call the credit card company who issued you the fixed rate credit card and ask them if they will lower the fixed interest rate on the card you have with them. This may or may not work. If you have established a very good credit history with the company they might consider it.
If the interest rate if a fixed interest rate on the credit card you found with a lower interest rate you might want to apply for that one and just pay off the higher fixed interest rate and not use it anymore. However if you do this be careful not over spend and get into credit trouble because you have two credit cards. This is easy to do and you can find that you didn't save end up saving any money after all.
