Fixed rate credit cards

Fixed rate credit cards are the ones in which a fixed rate of interest is collected throughout the period of the holding of the card. Having such a card has its merits; one of them is the avoiding of the rate of interest fluctuation. There are numerous institutions offering these fixed rate credit cards, but to pick the right one from the whole pack is both important and difficult. American Express, Elan, Sears, Chase Student, Chase Visa, Exxon Mobil, Southwest Visa, GM Shell, Gap, Washington Mutual, Capital One, HSBC, Wachovia, MBNA, Western Union Prepaid, Providian, and Wal Mart were but some of the institutions that offered these services.

As for some of the fixed percentage rates, Arkansas National Bank Card offered 7.92, Simmons First Card offered 8.95, FIRST PREMIER Bank Visa/MasterCard offered 9.90, Classic Visa from CME offered 10.24, SunTrust Preferred Card and Regions Bank Preferred Card offered 12.99.

As of now, the fixed rate credit cards comprise only 35% of the market. The variable interest APR scheme serves the rest, the main group. Before delving further, let us know what is APR, the Annual Percentage Rate. As the name suggests, it is the percentage rate calculated annually. APR is paid on a yearly basis and it is slightly a complicated calculation, both with a variable rate, the interest rate periodically varying based on the movement of an index, and a fixed rate. The fixed APR does not fluctuate monthly or quarterly. The cardholder makes an agreement with the institution that he or she would pay a certain percentage of interest and this specific rate, once made at the very initiation of the credit card, shall be in force till the entire period of his or her holding the card.

Apart from the permanent rate of interest, there are other semi permanent offers. Some of the credit card sellers offer this service. It is not for the entire life period, but for a mutually agreed time period. These Introductory Offers, generally for 12 months, 15 months, 18 months periods are made to attract customers. When this time limit is over, it will be on par with the prevailing market rates.

Being a volatile market, this credit card business, the rates are all the time subjected to changes. If you want to go for the greatest fixed rate credit cards, evaluate them from a credit card rating website. It is a known fact that the variable rates are relatively lesser than the fixed ones. But what the cardholder should be aware of here is that along with the change in the associated index, he or she must take the risk of the change in rates.

And one more important thing. It is very important that we are having it as the bottom paragraph. It might be attractive, this fixed rate credit cards, but the institutions that offer them can and they do so often, change the rate. All they got to do is provide you with a just 15 days written notice on the buck-slip that is slipped in along with your monthly statement. Read the Fine Print, please!