f you listen to the
experts, they’ll tell you First, think hard and honest
that a low, fixed-rate card about how you use your credit
is better than a variable rate cards. Do you keep debt on them
credit card that starts low and one month to the next, or do you
then slowly creeps up its tend to pay off the entire
interest rate every year. The balance every month? And
difference is that fixed rate remember, we said be honest.
credit cards tend not to have Because if you lie to
jumpy rates as much. And if a yourself—and say you’ll pay off
card company does decide to raise your payments every month, and
a fixed rate card, they have to then don’t—you could end up with
tell you first. With a variable a very bad credit situation,
rate card, the rates do tend to whether you’re interest rate
move a lot, and the credit card started low or not.
company does not have to warn you
when they do. Plus, don’t just jump into a
fixed rate card because that
Right now, you’re probably flyer in the mail said it was
waiting for one thing—how you can great. Credit card agreements are
get your hands on one of those very complicated things. They can
prime fixed rate credit cards! include, in the very fine print,
It’s one thing to understand how pretty stiff penalties if you are
much better an idea they are, but late on one payment, for
it’s a whole better thing to instance, or go over your balance
actually have one in your wallet. once. In that case, they could
But hold your horses. There are jack up your low rate, and turn
some other factors that you need your card from fixed rate to
to consider before you jump on variable, just like that. So
the fixed rate bandwagon. before you agree to anything,
speak with a person at the credit a late payment, and never go over
card company and get all the your balance, chances are, that
facts about the card. low interest rate, whether fixed
or variable, will jump up after a
A big detail that you should ask set amount of time, say like six
about on your new cards, months. It’s important to know
especially the ones with low that, because another card may
starting interest rates, is: when give you the low introductory
does that great interest rate interest rate for 18 months.
expire. Even you act squeaky
clean with your card, never make
About the Author:
Joshua Shapiro recommends Find Credit Cards to find the right low interest credit card offer for you. See http://www.findcreditcards.org/type/low-interest.php for more information.
