Does It Matter If I Have a Fixed Rate on My Credit Card?

A Credit Article Contributed by Annie Bauers

Is It That Important to Have a Fixed Rate on My Credit Card?

Yes it is important you have a fixed rate credit card especially if you are paying a low interest rate on the credit card. This is because if you don't have a fixed rate credit card you might not have a low interest rate for long. If your credit card is not a fixed rate credit card and you have a very low interest rate you will want to keep that interest rate. If it is not a fixed rate credit card the interest rate will probably go up. You work hard for your money and you want to save it.

One good way to save your money is to have a credit card with a low interest rate so if you get one make sure it is a fixed rate credit card first or you might find yourself paying more than you bargained for!

I Don't Have a Fixed Rate Credit Card but the Interest Could Go down Right?

If your credit card is not a fixed rate credit card the interest rate is more likely to go up than go down. If you have a very good credit score you can get a credit card with a very low interest rate. However if you secure a low interest rate on your credit card but it is not a fixed rate credit card you may not keep that interest rate and if it's low to begin with chances are the interest rate is not going to go lower.

The chances of your credit card interest rate going down are very slim, the credit card company offered a very low interest rate in the first place to get you to apply for the card. If they wanted you to have that interest rate they would have given you a fixed rate credit card so you could keep that low rate. So be cautious of a credit credit card that is not a fixed rate credit card because even though the interest could go down it most likely won't.

Someone Told Me to Make Sure I Get a Fixed Rate Credit Card, Why?

You should get a fixed rate credit card so your interest rate won't go up on you. If you have a credit card that is not a fixed rate credit card there is a chance that the interest rate could go down but that doesn't happen often. What happens more often is that your credit card interest rate will go up. You should get a fixed rate credit card so you always know how much interest you are paying every month.

If you make all of your credit card payments on time your credit score will go higher and when it is time for you to renew you credit card you can gert a low interest rate on a fixed credit card so it might be in your better interest to do this.