Best Fixed Rate Credit Cards

October 6, 2010Credit Card Guideby EconomyWatch


Best Fixed Rate Credit Card is the one with which the credit card holder hedges the risk of interest rate fluctuation. Fixed rate for interest is charged by almost all credit card issuing companies but to choose from the whole array is a bit tough job.

Fixed rate credit card charges a fixed rate of interest to the card holders for the entire period for which the customer holds the card. The rate at which the customer agrees to pay at the time of initiation is maintained through out the life of that credit card.

The fixed rate comes under annual percentage rate (APR) which is required to be paid on a yearly basis. APR also comes in a variable rate where the interest rate varies on a periodic basis depending on the movement of an index on which it is based. But the fixed APR do not fluctuate over the period of time (monthly or quarterly). If someone comes to an agreement of paying the credit card issuing company at a specific rate then it is maintained through out the entire life for which he/she uses the card. But it has been observed that the fixed rate credit cards comprise only 30% of the total credit card market. 70% of the market is captured by those credit cards which offer variable APR.

There are also temporary introductory fixed APRs which are not valid for the entire life span of the credit card but only for a restricted time-frame. These are known as introductory offers which are offered by the credit card issuing companies for enticing the customers. These introductory incentives are fixed generally for a period of 12 months to 15 months. After this period the rate becomes same with the market rate.

Some of the best fixed rate credit cards are :

  • 7.92% Fixed APR offered by Arkansas National Bank Card
  • 8.95% Fixed APR offered by Simmons First Card
  • 9.90% Fixed APR offered by First PREMIER Bank Visa/Mastercard
  • 10.24%Fixed APR offered by Classic Visa from CME
  • 12.99% Fixed APR offered by SunTrust Preferred Card and Regions Bank Preferred Card
  • Variable rates are comparatively less than their fixed counterparts. But the customers going for the variable interest rates should also take the risk of rate change along with the change in the associated index. The best fixed rate credit card is difficult to choose because these schemes generally come with a lot of added offers. But if a customer chooses the credit card on the basis of best fixed rate credit card then the above mentioned ones are the market leaders. But the credit card market is a dynamic one, so these rates are subjected to change. A customer should always compare the credit card rates from a credit card rating website while opting for the best fixed rate credit card.


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