Jun 03, 2019 / Credit

The Value of Finding a Fixed Rate Credit Card

Have you ever found yourself wishing you could bring back the good old days? Regardless of age, everyone goes through times when they wish life was as simple as it used to be. And if you have a variable interest rate credit card with fees that overshadow so-called rewards, you might be remembering the good old days when fixed interest rate cards weren’t so hard to find. Here are a few reasons why fixed interest cards are the hidden gems of consumer finance.

Don’t Worry About Interest Rate Hikes

As their name suggests, variable interest rates cards are subject to interest rate fluctuations. Most credit cards these days are variable interest cards. And unlike their fixed rate counterparts, these cards charge an annual percentage rate of interest based on an index rate like the prime rate. If the index rate goes up, the credit card’s interest rate goes up and vice versa. It’s not always easy to follow the index rate or predict when your credit card’s interest rate might change. But with a fixed interest rate card, you always know what your interest rate will be. You can make purchases, plan payments, and budget your credit card usage with confidence.

Credit Card Balances Can Be Less Expensive

If you carry a balance on your credit card, the uncertainty of a variable interest can be risky. Because variable rate cards can go up at any time, and because it’s not always easy to predict how high the rate will go, the interest you pay on your balance from month to month may end up surprising you. But with a fixed interest rate card, you don’t have to worry about your interest rate skyrocketing without warning. Your rate will remain the same as it’s always been. Partly because fixed rate cards shelter you from rising interest rates, Bankrate Chief Financial Analyst Greg McBride called fixed rate cards “pink unicorns.” “These cards are all but obsolete,” he said, “and to snag one of these you’ve got to be eligible for membership at the few credit unions that offer these cards.”

Perfect for Balance Transfers

If you have multiple credit cards with balances and variable interest rates attached to each one, keeping up with payments and fluctuating interest rates can be overwhelming. And finding a way to transfer those existing balances onto a fixed interest rate card can be a lifesaver. Not only will this simplify payments—reducing your monthly bills from multiple cards down to a single card—but it can also save you money. If your new fixed interest rate is lower than your prior variable interest rates, by definition you’ll be saving money on interest payments every month.

Find the Right Fixed Interest Card

Yes, fixed interest rate cards can be hard to find. And finding one with a low rate, no fees, and worthwhile rewards can be akin to finding that elusive pink unicorn. But it is possible. And Utah First Credit Union is one of “just a handful” of the 602 credit card issuers to offer a fixed interest rate card. With Utah First’s Orange Platinum Visa, you get a low fixed interest rate, no annual or surprise fees, and reward points for every dollar you spend. It’s the trifecta of credit card benefits and it’s available at Utah First. Maybe more importantly, Orange Platinum Visa can bring back the good old days of predictable interest rates, simpler payment planning, and a more rewarding credit card.

To learn more about Orange Platinum Visa and the benefits of a fixed interest rate, visit Utah First or apply online.