What is a fixed rate credit card?

A fixed rate credit card is a type of credit card that charges a consistent interest rate regardless of the market. This means that no matter how much your credit score fluctuates, the rate that you pay will stay the same when you make payments on your card. In California, the annual percentage rate (APR) of a fixed rate credit card cannot exceed 20% due to the state’s credit card law. This law also doesn’t allow lenders to charge more for late payments than the amount you owe. One of the main advantages of using a fixed rate credit card is the potential savings you can get when you pay your balance in full or make payments on time. Since your rate won’t ever change, you’ll know exactly how much you’re paying each month. Additionally, you don’t need to worry about any surprises when you receive your bill. Fixed rate credit cards can be great for long-term budgeting and planning since you know what your payments will be upfront. It’s worth mentioning that while some credit cards offer promotional or introductory rates, they’re generally only valid for a certain period of time. When the promotional period ends, these rates can jump significantly so a fixed rate card is a better option for those looking for more stability. Overall, a fixed rate credit card is a great option for those looking for more control over their finances in California. The state’s credit card law not only prevents lenders from charging more than 20% APR, but it also protects consumers from surprise rate increases.

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What is a fixed rate credit card?

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