Before selecting a credit card, an important consideration should be the annual percentage rate. But most of the people consider the number rather than the terms as far as the annual percentage rate is concerned. Annual percentage rate can be divided into two sections, one is the fixed rate and the other is the variable rate.
The annual percentage rate for variable credit cards is dependable on the index rate. In this condition, the annual percentage rate fluctuates if the index rate fluctuates due to any reason without any foremost notice. But the fixed rate credit cards do not violate like variables, though it is not exactly fixed as the name suggests. All the details regarding the conditions of annul percentage rate fluctuation must be written previously on the policy as far as the fixed rate credit cards are concerned or the company may change the APR with a short notice of 2 weeks at least. It is notable that the APR with a fixed rate is always higher than the variable ones. Generally every credit companies provide the very first introductory year without any annual interest. After that they switch either to variable rates or fixed rates. The basic advantage of a fixed rate is it can not be frequently changed.
To decide which plan will be suitable a beginner must consider the market fluctuation rate first and foremost. The current average rate for variable rate credit cards is 14.72% and the average rate on fixed rate credit cards is 13.33%. If an individual is regular in paying the monthly balance then variable rate can be better. APR affects those who have tendency to carry balances through cards. Preference should be made for the low APR compared to variable rate credit cards with low APR, though it completely depends on the individual expenditure and payment habits.
