What are the different kinds of interest rates for credit cards?

Interest rates for credit cards vary depending on the type of card and the card issuer. These interest rates can be broken down into two groups: fixed and variable. Fixed interest rates are those which stay the same over the life of the loan. These are usually lower than variable interest rates and give borrowers a consistent rate for the duration of their loan. This type of rate tends to be most beneficial if a borrower plans to pay off their loan in full. Variable interest rates are subject to fluctuations in the marketplace. These rates can be higher than fixed rates, but they provide greater flexibility if the borrower plans to pay off their loan over a longer period of time. Additionally, variable interest rates can offer savings if the market rate decreases over the life of the loan. In Washington State, the maximum interest rate that can be charged on credit cards is determined by the state’s Office of the Attorney General. As of 2020, the maximum is 15.0% for any single credit card transaction. Most card issuers will offer rates lower than this maximum, so borrowers should always take time to shop around for the best rate.

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What are the different kinds of interest rates for credit cards?

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