Looking For A
Low Fixed Rate Credit Card?

If you have found a low fixed rate credit card, don't blink your eyes, it might disappear. Over the last few years, low fixed rate cards have almost reached extinction. I'll provide you with some information as to why this is happening and where you can still find fixed rates. You'll also find here, one of the best cards of this type available on the market.

Over the last few years, the rate at which banks borrow money from the Federal Reserve has increased. This increase was the result of many U.S. economic factors. Therefore, credit card issuers had to compensate for this loss of profit caused by the increase. A majority of larger banks chose to alter their annual percentage rates by doing away with the ever popular fixed rate, and offering variable rates.

If you still want to find a low fixed rate credit card, a small bank, or even a credit union will be your best option. Small banks and credit unions do not always chase higher profits, unlike their corporate counterparts. This allows you to receive lower rates and even more lax terms. Some credit unions may not even charge you a late fee for being up to 15 days late.

How can credit unions do this? They value customer relationships. Since credit unions are much smaller, it gives them a chance to service their customers on a personal level and get to know the customers specific situations. One disadvantage to acquiring a credit card through a credit union is the membership. You or a relative must become a member of the specific credit union issuing the credit card in order to apply for it.

How important are credit card rewards to you? One other disadvantage to acquiring a credit card issued through a credit union is that you will probably not earn rewards. Credit unions do not usually offer any types of rewards on their credit cards, therefore allowing them to keep their interest rates low. Their credit cards are on the plain side, although a few select credit unions donate money to their communities and charities based on transactions made with their issued credit cards.

Do you have a small bank or credit union in your area that interests you? If not, another option for a low fixed rate credit card, is through Pulaski Bank. Pulaski Bank began issuing credit cards in 1995 and has been ranked as one of the country's best credit card issuers. The Pulaski Bank MasterCardŽ or VISAŽ offers this low fixed rate.

I'd like to leave you with one final piece of information about low fixed rate credit cards. Many consumers misunderstand the term fixed. A fixed rate in the credit card industry is not the same as, for example, a fixed rate mortgage. If you pay your mortgage late once, twice or every month, your rate does not increase. It is truly a fixed rate. In the credit card industry though, many factors can cause your rate to increase. These include making late payments, going over your credit limit, writing a bad check for payment to your credit card, and even paying late on other accounts that are shown on your credit report. If you choose a low fixed rate credit card issued through a bank rather than a credit union, make sure to avoid these situations to keep that low fixed rate.