2007-01-25 06:25:52 · 5 answers · asked by Lauren M 1 in Business & Finance ➔ Credit
Are rates usually variable based on the Prime Rate or can you get a fixed rate?
2007-01-25 06:59:10 · update #1
There are some introductory rate specials at under 5%. Anything under 10% is reasonable if you have good credit.
However, the best way by far of using a credit card is to pay the entire balance every month. If you do that, you will never pay any interest, so the interest rate doesn't matter.
Personally, I look for the best rewards cards so I can earn rewards on everyday purchases, like groceries and gas. I don't care what the interest rate is because I always pay the whole balance. I just care about the rewards.
2007-01-25 06:42:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It's essentially how much you're charged by the credit card company to borrow money from them. The credit card company looks at how much you've charged to your card and then multiplies that by the interest rate. The secret of credit card interest is to find the card with the lowest possible fixed rate.
Interest rates go up and down depending on many different factors. If you have a variable interest rate, your credit card company could offer you a 9% rate (cool!) when you apply, then change it to 18% (uncool) in two months. If you have a fixed rate, they can't.
Don't fall for the whole "introductory rate" scam. This means that you'll have a nice, safe rate for the first year, and then the company will jack up the rate to some ridiculous number. A reasonable interest rate is anywhere between 5 and 11%.
Also, just a heads up, some credit card companies may list your "monthly interest" as a "finance charge" on your monthly bill.
apply at: http://www.card-gallery.com/ and enjoy with reasonable interest rates
2007-01-29 05:43:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Rates for cc can range immensely. I would say anything under 12% would be reasonable. However, cc rates should not be variable, always fixed
2007-01-26 16:14:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Alot depends on your credit history.
For most people it should be about 10-15 %
If you have poor credit you could be look at over 20% and you have excpetional credit you may be in 5-10% range.
2007-01-25 14:35:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
i do not think there is any such thing as fixed rates on a credit card. you get what they give or look for a better credit card.
2007-01-29 00:18:42 · answer #5 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋