Is it better to have a fixed or variable APR on a credit card?

[imported_Tomato]

I was told I qualify for a 9.999% fixed APR or a 7.999% variable APR. Which is better and why?

For those of you with credit cards:

1. How many credit cards do you have?
2. How much credit do you have available on each? (you don't have to answer, I'm just curious)
3. What is your APR for each card, and is it fixed or variable?

 

[WannaFly]

Which is better ford or chrysler? (kinda how muc sense this topic makes)

It depends on if intrest rates go up or down. If they go up a fixed is good(if its up past the fixed) if they go down a variable is good.

1. 1
2. dont remember, 3500 or so
3. 8.75 IIRC

 

[imported_Tomato]

Originally posted by: WannaFly
Which is better ford or chrysler? (kinda how muc sense this topic makes)

It depends on if intrest rates go up or down. If they go up a fixed is good(if its up past the fixed) if they go down a variable is good.

1. 1
2. dont remember, 3500 or so
3. 8.75 IIRC

Ah. So right now, should I request the 7.999% variable and then switch to 9.999% if interest rates go up?

 

[TuxDave]

Why are you interested inthe APR of your credit card? Are you planning to not pay off your cards?

 

[RossMAN]

Which credit card companies are they?

Does either have an annual fee?

Are they both platinum?

Does one of them offer one time virtual cc's?

Does either have better perks?

What are the limits for each cc?

 

[Smolek]

Originally posted by: Tomato

Originally posted by: WannaFly
Which is better ford or chrysler? (kinda how muc sense this topic makes)

It depends on if intrest rates go up or down. If they go up a fixed is good(if its up past the fixed) if they go down a variable is good.

1. 1
2. dont remember, 3500 or so
3. 8.75 IIRC

Ah. So right now, should I request the 7.999% variable and then switch to 9.999% if interest rates go up?

If they will allow it, go for it, but if it's an account that you are going to charge and pay off during the grace period then interest will not matter.

 

[imported_Tomato]

Originally posted by: TuxDave
Why are you interested inthe APR of your credit card? Are you planning to not pay off your cards?

I pay in full every month, just wondering because someone in another thread posted a lower APR on credit cards will result in a better credit score.

 

[TuxDave]

Originally posted by: Tomato

Originally posted by: TuxDave
Why are you interested inthe APR of your credit card? Are you planning to not pay off your cards?

I pay in full every month, just wondering because someone in another thread posted a lower APR on credit cards will result in a better credit score.

I always thought it was the other way around. A better credit score will get you more offers with lower or 0% APRs

 

[imported_Tomato]

Originally posted by: RossMAN
Which credit card companies are they?

Does either have an annual fee?

Are they both platinum?

Does one of them offer one time virtual cc's?

Does either have better perks?

What are the limits for each cc?

YGPM

 

[sniperruff]

1) 3
2) $4000 on amex student blue, about $7000 on blue cash the best for electronic warranty), and about $5000 on citi dividend (the best card)
3) i forgot. i never really planned to carry over a balance since i hate borrowing.

i get the blue student b/c it was my first card, the blue cash because it has the double warranty and return guarantee thing (and it looks cool), and the citi dividend b/c of its 5% gas cash back and 1% anything cash back

i'd try to get an amex and a master and probably one more visa cards, or maybe even discover. that way you won't miss out on any card-specific deals =)

and oh it is about less than 3 years since i got my first card, the student blue with a $500 limit...

 

[Smolek]

Originally posted by: Tomato

Originally posted by: TuxDave
Why are you interested inthe APR of your credit card? Are you planning to not pay off your cards?

I pay in full every month, just wondering because someone in another thread posted a lower APR on credit cards will result in a better credit score.

APR has no effect on credit scoring, it's the other way around (better score = lower APR)

 

[Mill]

Originally posted by: Tomato

Originally posted by: TuxDave
Why are you interested inthe APR of your credit card? Are you planning to not pay off your cards?

I pay in full every month, just wondering because someone in another thread posted a lower APR on credit cards will result in a better credit score.

APR does not affect your credit score. I would go with a fixed rate for right now. They won't just let you change at will, and rates are rising. What company is offering you the two different rates? I'm very interested in hearing...

 

[Smolek]

n/m

 

[randomlinh]

can you even change it later? that may not be an option

1. 4-6
2. lets say too much
3. anywhere from 9.x -> 19.x hey, it's a discover card, first card I ever got.. never use it, but it's there.

 

[imported_Tomato]

Originally posted by: Mill

Originally posted by: Tomato

Originally posted by: TuxDave
Why are you interested inthe APR of your credit card? Are you planning to not pay off your cards?

I pay in full every month, just wondering because someone in another thread posted a lower APR on credit cards will result in a better credit score.

APR does not affect your credit score. I would go with a fixed rate for right now. They won't just let you change at will, and rates are rising. What company is offering you the two different rates? I'm very interested in hearing...

Thanks Mill, and thanks for the other replies pointing out APR has no effect on credit scoring.

MBNA is offering me two different rates, the customer service rep. told me I qualified for both. I did end up going for the fixed 9.999% rate, good to know I picked the "right" one.

 

[kranky]

"Fixed" rates are really not fixed. They just don't change as often. The issuer reserves the right to change the "fixed" rate with some notice.

A very popular game that some CC issuers play is to offer someone with so-so credit a fixed rate card with a relatively large credit limit. They hope the person runs up a nice balance. Then they send you notice that you are getting a new "fixed" rate which is higher. But since the person may not have excellent credit, they could be stuck with a high balance at a high interest rate because they can't get another card to move the balance to.

 

[imported_Tomato]

Originally posted by: kranky
"Fixed" rates are really not fixed. They just don't change as often. The issuer reserves the right to change the "fixed" rate with some notice.

A very popular game that some CC issuers play is to offer someone with so-so credit a fixed rate card with a relatively large credit limit. They hope the person runs up a nice balance. Then they send you notice that you are getting a new "fixed" rate which is higher. But since the person may not have excellent credit, they could be stuck with a high balance at a high interest rate because they can't get another card to move the balance to.

Good trick on their part, I'll have to be careful not to run up a balance on this card.

 

[Mill]

Originally posted by: Tomato

Originally posted by: Mill

Originally posted by: Tomato

Originally posted by: TuxDave
Why are you interested inthe APR of your credit card? Are you planning to not pay off your cards?

I pay in full every month, just wondering because someone in another thread posted a lower APR on credit cards will result in a better credit score.

APR does not affect your credit score. I would go with a fixed rate for right now. They won't just let you change at will, and rates are rising. What company is offering you the two different rates? I'm very interested in hearing...

Thanks Mill, and thanks for the other replies pointing out APR has no effect on credit scoring.

MBNA is offering me two different rates, the customer service rep. told me I qualified for both. I did end up going for the fixed 9.999% rate, good to know I picked the "right" one.

I would have gotten the fixed as well. Be advised, however, that at any time they can change you rate. It is called "rate-jacking" and it happens quite often. If they consider you to be higher risk all of a sudden(whether due to higher balances or a late on another account) they can raise your rate to over 20%. They can also raise your rate without reason as well, so don't always expect a fixed rate to remain that low.

Keep your balance decent, make your payments on time on all your accounts and you should be fine.