How to Compare Fixed Credit Cards

Not all credit cards offer the same terms.

Credit plays a large role in the spending habits of consumers, and the credit cards they use are issued with a wide variety of rates and features. Comparing credit card terms is a move of a savvy borrower.

Annual Fees

While a fixed-interest credit card rate is set at an unchanging amount, annual fees may be different from one credit card to another. An annual fee is the amount that the creditor charges a consumer each year for the privilege of having the card. Some cards carry no fee while others require fees of up to $500 per year.

Introductory vs. Long-Term

Some credit cards offer a fixed introductory rate, meaning that the rate will remain the same for a small duration of the time that the consumer has the card. For example, a credit card may be issued with a 0.0 percent interest rate for the first year, with the understanding that it may be increased to as much as 21 percent thereafter. When considering fixed-rate credit cards, shop the rate---as well as how long the rate is guaranteed to last.

Considerations

Issuers of fixed-rate credit cards offer contrasting features and incentives. Many offer rewards points that may be redeemed for cash, gifts or frequent flier miles. When comparison shopping for fixed-rate cards, find one that integrates your desired features, meets your unique needs as a consumer and represents a fiscally responsible choice.

References

• Credit: White Type of Credit Card is Right for You?
• Bankrate: How Do I find a Better Credit Card?
• Credit Card Blog: The Inside Scoop on Credit Cards