Best Credit Card Rate
Learn which offers the best credit card rate, a variable rate or a fixed rate credit card?
Variable Rate Versus Fixed Rate Credit Cards
The interest rate for variable rate credit cards is a rate that is added onto the prime rate, which the Federal Reserve regulates. When the fed raises the rate, the Variable Rate charged to the cardholder also goes up.
Fixed rate cards; however, change at the whim of the issuer, and as such are not actually 'fixed'. Typically, credit card issuers are quick to raise interest rates whenever the fed increases the prime rate, and to raise them much quicker than lowering fixed rates when the interest rate drops.
Lower rates can generally be found with gold and platinum credit cards versus standard unsecured credit cards. They also often come with higher credit limits. Also, they may have larger annual fees, particularly if they offer rewards such as cashback. Over the past couple years, interest rates on fixed rate gold credit cards have been around 11 to 12%, while fixed rate platinum credit cards ranged between 9.8 to 10.79%. But to qualify for those low interest rates, the applicant needs to have a better than fair credit score.
Bad credit? To improve your chances of approval, first improve credit scores. Don't forget that every consumer is entitled to an annual free credit report copy from each of the three credit bureaus (TransUnion, Equifax and Experian). Fix errors and repair bad entries by making good on delinquent debts.
Use our credit card search and submit an online credit card application for the card that's best for you.
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