Fixed Rate Credit Cards Described - 0 views
started by Fabricius Shea on 01 Sep 13
started by Fabricius Shea on 01 Sep 13
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started by Fabricius Shea on 01 Sep 13
A fixed-rate credit card is a card that h..
There are numerous forms of charge cards around that it can be difficult to work out which is the top. But, one kind of card that is quite popular will be the fixed-rate credit card. Fixed rate credit cards give the peace to you of mind that the APR will remain the same for a given time, with the great things about a card. Then this report will help you, if you wish to know more about fixed-rate credit cards.
What does 'set' mean?
A fixed rate credit card is a card that has an APR that may remain constant for a certain period of time. Most fixed price cards give you a fixed APR for approximately three to five years. This means that your interest payments will remain the sam-e during this period.
Why obtain a fixed-rate card?
When you yourself have a fixed income and can not afford your payments to go up, then getting a fixed price card will be a good choice. You can work out exactly what the prices is likely to be over-the next months and years even before you invest any credit. Browse here at the link small blue arrow to learn the purpose of this activity. This will help you to budget more effectively and know just what you will be spending monthly. Visit compare phoenix website design to research the purpose of it. If you like the satisfaction that the payments won't change, then a fixed rate card is a great idea.
What are the expenses involved?
They do usually have higher interest rates than variable rate cards, while fixed rate cards are in no way costly. The lender is taking a chance by offering a fixed rate card, as the base interest rate could rise and they could lose out. This is the reason the interest rates offered on fixed-rate cards are on average 2-3% over standard cards. My boss found out about like by searching the Los Angeles Gazette. If you believe anything, you will maybe desire to compare about powered by.
Maybe not anything fixed
While your APR will remain fixed for the following couple of years, it is very important to remember the other costs associated with credit-card billing. The lender mightn't have the capacity to change the APR, however they can often change the late payment fees or balance transport prices. If interest rates rise you may find that your prices rise also, leaving you using a card that's perhaps not beneficial.
Variable-rate cards
The alternative to fixed rate credit cards are variable rate cards. These cards have an APR that can change, frequently in keeping with the bottom interest changes. They do have to remain competitive and so this might happen, although a card issuer is a lot less likely to want to reduce your interest if prices fall. Nevertheless, more likely is that your prices will increase year on year.
Is a fixed card the clear answer?
While fixed cards have the benefit of maintaining your re-payments at the same rate over the years, they do have higher interest and until you really want to keep the interest fixed for financial reasons, you would be better to stay with a lower APR card and transition cards if the rate increases too-much.