Fixed apr credit cards


Fixed APR credit cards are credit cards that are given at fixed rates. APR, also called as Annual Percentage Rate, takes into consideration the interest rate at which interest is applied in the credit card account as well as other charges, fee etc. This is the reason why APR is better criteria for comparing different credit cards rather than interest rates. In case of credit card, APR can be defined as the rate at which the balance pertaining to the credit card account is carried over and at which rate; the person is required to pay the interest. APR is always cited in annual terms and thus, is a yearly rate.

 

In fixed APR credit cards, the APR is not changed like variable APR credit cards. But it does not at all mean that Credit Card Company cannot increase the fixed APR. Of course it can, but in such cases, it is required to intimate its customers about the same, before resorting to that. Once a person has obtained a credit card at fixed APR, this rate remains applicable to the purchases etc, until the account is closed by a person.

 

There are many types of APRs that are related to Fixed APR credit card. First one is the APR for making purchases or for the purpose of making cash advances and for the balance transfers. The rates attached to the balance transfer and cash advance are higher as compared to the fixed APR for purchase. Second type of fixed rate credit card APR is the Tiered APR.
In this type of fixed rate credit card, the APR is applied at different rates at the balance outstanding in the credit card account of a person. Higher the outstanding balance, higher the APR. Penalty APR is another form of APR associated with the fixed APR credit cards. If a person makes late payment, this type of APR comes into effect. Longer is the repayment period, higher the APR. Other two forms of APR that are attached to the fixed rate APR credit cards are Introductory APR, which is offered for some introductory period only and second, the Delayed APR, which is applied in future period.

 

There are many credit card companies that provide fixed APR credit cards. Thus, it is important for a person to compare the terms and conditions and choose the best one. Best credit card among such cards is one that allows the credit card holder to hedge the maximum risk against fluctuations in the interest rates that might take place.

 

Since credit card companies are not able to charge higher interest rates in case of fixed APR credit cards, it is commonly seen that these cards are obtained with some difficulty. As per the survey conducted by different sources, about 30% of the total credit cards are formed by fixed APR credit cards whereas 70% of the credit cards circulating in the market are the variable APR credit cards. Excellent credit history is very helpful in getting a Fixed APR credit card. Thus, it is very important that all the persons that desire to get fixed APR credit cards in future should repay their existing debts and other obligations in time. When the interest rates in market are increasing, fixed APR credit cards are one of best options available.

 

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