» Low APR Fixed Credit Cards
Low APR fixed credit cards are credit cards with a low fixed annual percentage rate. With a fixed card, the interest rate is not based upon the prime rate. The prime rate rises and falls during normal economic cycles. Currently in this economic cycle, fixed rate credit cards have fallen out of favor with banks and most now offer variable interest rate cards. With a variable rate card, the interest rate is based upon the prime rate. In times when the prime rate is falling as it has in the past few years consumers benefit from the interest savings on the low rates. Thus, it is during these times banks are inclined to offer fixed rate credit cards. In times when the prime rate is rising, banks earn more money on interest. Although the Prime rate has remained low banks are anticipating a higher prime rate in the coming years. Thus, most credit card offers are now based upon the prime rate. It is expected that banks will continue to offer variable rate credit cards until the prime rate begins to fall again.
There are no fixed rate credit cards in this category at this time. Please see our Low Interest Credit Card section for the best low interest credit cards available. At this time fixed rate credit cards are more readily available in Canada.
Getting the best deal you can when it comes to credit cards is important in these difficult economic times. Credit cards with low interest can be a help when it comes to paying your credit card bills each month. You want to try and find a credit card with a low APR and low or no annual fees. Look for credit cards with low interest that also provide cash back bonuses or other types of incentives such as airline miles or discounts on gas. Credit card issuers that offer introductory low or 0% interest on purchases for specified times often offer the same rates if you are moving a credit balance from one card to another. Make sure to read the fine print to see what the interest rate is going to be when the introductory period ends. Please note: the credit cards in this review are all variable rate cards NOT fixed rate credit cards.
Citi Diamond Preferred Card. Citi offers a 0% introductory APR on both balance transfers and purchases made with the card for the first 21 months. At the end of the introductory period the interest rate goes up to between 11.99% to 20.99% depending on your credit history. There is no annual fee with this card.
Capital One. Capital One is offering 0% interest on purchases made with the card until September 2012. After the introductory period interest rates will run between 12.9% – 20.9% depending on your specific credit history.
Discover It Card. The APR for the Discover It Card is based on your credit history. It will likely range from between 10.99% and 22.99%. There is an introductory 0% offer for balance transfers available for the first 18 months. The same offer applies for new purchases for the first six months. Similar to the Chase Freedom card you earn 5% cash back on rotating categories during the first year. After you spend $3,000 on the card then you qualify for a 1% cash back on all other purchases. Until you reach that rate there is 0.25% cash back rate. There is no annual fee.