Fixed rate credit cards are nice to have. These types of credit cards are perfect for anybody. For people who carry a balance every month it only makes sense to have a low interest rate. It gives you the opportunity to get ahead and pay down the balance on your card without paying a lot of interest. These cards are a little trickier to get approved on then most. You need to have excellent credit history. The majority of people in this category typically pay their whole bill off from month to month and are considered low risk by the banks. Many people only have them to get the rewards. If you have bad credit then you need to work on you’re credit report so you can get approved. When you get approved you can expect interest rates 5% less than most cards. Think about your interest going from 21% to 9% and how much faster you could pay down your debts. To keep the low rate you will need to pay on time every month.
A rule of thumb when selecting a card is to go with a fixed rate than that of a variable rate. When doing your research make sure you go through and find out if there are any fees involved. If you plan to transfer a balance there might be a fee involved and it should be considered as interest because you are paying something. If you can pay your balance off every month, go ahead and do it. There is no reason to be giving your money away to big banks. If you are going to make purchases on something you can’t pay in full, take the time to see if it makes sense to use your charge card.
With the low rate you can work towards being debt free. Putting extra money on top of the minimum payment can save a ton of interest. Whatever you use the card for don’t forget to stay within the guidelines of the contract. Late payments and keeping your balance over 50% of your limit are factors which could break the rules imposed on you. Always apply for a low apr credit card. Some of them do not have the best rewards programs but its nice to not pay a lot of interest.