Fixed interest rate credit cards are nice to have. It does not matter if you are a college student or retired. If you tend to carry a balance on your credit card from month to month this is a great option for you. It gives you the opportunity to get ahead and pay down the balance on your card without paying a lot of interest. Getting approved on such a credit card is not easy. A low rate credit card is usually for those who have good credit and a history of making payments on time. 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. The banks will have stipulations in the agreement that you pay your bill on time or you risk losing the low rate.
Most of these credit cards come with a fixed rate for the first 12 months. When doing your research make sure you go through and find out if there are any fees involved. Remember that even though you might have a low percentage on your card, a fee should be interpreted as interest because its not going to your balance. 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 can’t pay in full for the item think about if you really need it.
With the low rate you can work towards being debt free. You could knock a lot of time and save large amounts of interest over the life of the balance. 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 fixed apr credit card. Some of them do not have the best rewards programs but its nice to not pay a lot of interest.