What Are the Advantages of Fixed Rate Credit Cards?
Rate (LIBOR), and then varies as that independent standard does. So a variable rate might be something like “Prime Rate + 7%.” A couple of quick clarifications to correct common misconceptions: First, the contrast between fixed and variable is not the same as the contrast between introductory and non-introductory. A credit card, for example, that offers a promotional 2% interest rate the first six months which will then become a Prime Rate + 8% interest rate after that has a fixed introductory rate and a variable non-introductory rate. A credit card that offers a promotional 0% interest rate the first year which will then become a 16% interest rate has a fixed introductory rate and a fixed non-introductory rate. A credit card that offers a Prime Rate + 10% interest rate from the get go has a variable interest rate, with no distinction between introductory or non-introductory. Second, a fixed rate doesn’t mean the credit card company is never allowed to change the rate. Variable rates c
