Fixed Rate Credit Cards: beware …though seemingly fixed, it can fluctuate

Fixed rate credit cards will have a fixed interest rate for as long as you carry and use the card (and pay as agreed). Or, you may find a rate that is fixed for the full time of your agreement and usage of your fixed rate credit cards. You can apply for "Fixed rate credit cards" online and receive an approval within 30 sec. Bank of America Visa Platinum cards are "Fixed rate credit cards" offering interest rates as low as 9.99%.

All interest rates are subject to credit approval and usage guidelines. Burgeoning interest rates happened to be the focal point of almost all discussions on credit cards recently. For the credit card holders who carry balances on their credit card, such conversations are merely to give an avenue for their worries. You may be spell bound why credit card rates are increasing in an unbelievable way and what is the way to circumvent the messy situation of higher rates and get instead, keep low "fixed Rate Credit Cards".

What makes the actual difference between a varying rate and permanent rate for credit cards? A variable rate card is openly tied to the first rate. When the first rate is increased by 0.50 percent, the interest rate of a changing fixed rate credit card in the course of time is raised by 0.50 percentage. Fixed rate credit card rates are usually more than the prime rate. The distinction between the prime rate and the actual rate of a given card is termed as margin. Fixed rate cards, however, are not related directly to the prime rate. According to the variation in the prime rate there happens slight increase or decrease in the interest rate of fixed rate cards usually stays the unchanged.

However, you should know that there is "no such thing" as a thoroughly fixed rate credit card! This seems to be ironical to its name. But, people still think that fixed rate credit card really mean it. This is an usual misinterpretation among cardholders. The price of all fixed rate cards can still increase manifold periodically. Though fixed rate cards do not swing as much as changing rate cards, they do vary on occasion.