Spend and Save with a Low Fixed Rate Credit Card

You can cut your interest costs each month in half on your credit card statements. How? With a low fixed rate credit card. If you're paying over 10% interest each month on your credit card then you're paying to much. There are credit card companies out there that would fight for your business, and save you money. So why are you settling? This article will explore the world of low interest credit cards and tell you what to watch for when shopping for a new card, and how to make your selection. By the end of this article you should be able to choose your low rate credit card, and start saving money.

Are those low rates really that low?

With a fixed rate credit card you are given an interest rate and that is your rate. Unlike some low interest credit card offers that provide an introductory rate then jack it up after 6-12 months, a low fixed rate credit card is just that, fixed. You apply for the card with the intention that this rate is the standard rate. These types of offers aren't as plentiful as the low introductory APR offers, so be sure to shop around for them. If you have a good credit history established you shouldn't have a problem getting approved.

What about annual fees?

Most low fixed rate cards will charge an annual fee. Why? Because they are offering a great service to you (saving you money) and in reality they're not making as much money off of you. While you might think that all that interest money goes towards profits, it isn't cheap to administer a credit card. When a company fixes a low rate for you an annual fee can make up for a bit of the loss. A fee under $100 is acceptable, but don't get gouged.

What's a good Low fixed rate credit card?

Generally anything offering an APR under 10% is great. Some new cards have shown up on the market with a 0% introductory rate, then moving up to a 8% or so standard rate. This is great in my opinion you can save some interest up front when you first open the account, and not get stuck paying through the nose later on.

Remember, credit card companies are now competing with lines of credit, home equity loans and the sort. Each of these loan options are working off of prime rate plus a percentage. If credit card companies don't come up with options like the low fixed rate credit card their going to be left to go the way of the dinosaur.