CB's Financial Services: we are bringing the fixed rate credit card offers directly to your doorstep!

Is a fixed rate credit card better for you than a 0% interest credit card?

Which one of these situations sounds like you?

• You have a revolving balance on a single credit card.
  
• You have a revoloving balave on multiple credit cards.
  
• You use 0% financing at department stores to purchase items.
  
• A large portion of your payments go to interest.

There are actually more types of credit cards that you can get but your answer to credit problems lies within these two types of credit cards.

• 0% interest credit cards

• fixed rate credit cards

A 0% interest credit card simply means your entire payment will go to principle throughout the specified time in your contract. After time frame has elapsed the credit card companies raise your percentage rate to their standard rate. The standard rate is a premium rate. This rate in much higher than that of a fixed rate credit card. The 0% credit card moves from a 0% fixed rate to on a variable rate which is prime rate plus a premium. This new rate usually and immediately puts your interest rate in a range of 10% to 23%. So what is happening is the credit card companies are trying to make their 0% back as fast as they can.

The Fixed rate credit cards are great because they offer a rate for the life of the balance transferred. The interest rates range from very low rates of 2.9% to 9.99%. Without the fixed rate most are 10% to 22% variable for life.  A variable rate is the going prime rate plus a premium rate.  Since prime rate moves up and down your rate will move up and down. With fixed rate credit cards you can reasonably expect to cut your interest each month by at least half. Since you have the ability to decrease your interest by a large amount, you have the ability to pay off your debt at a greater rate without increasing your payments.

Since most all credit card companies offer both types of credit cards; you must decide which of these credit card types better suites your needs.

How to determine if fixed or 0 percent is better for you:

Consider your timeframe? Can you pay off a 0% within the time frame of your grace period.
If you will be unable to pay off your credit card within a year but will make sure to transfer it to another 0% card before the timeframe specified it will work for you as well.
If you can’t get a credit card with a high enough balance to cover the 0% and can get it for a fixed rate start with the fixed rate credit cards offers.

If looking at yourself honestly; you know that you would not transfer a 0% rate balance before your timeframe ends; then you need to go with fixed rate credit card. If you use a 0% card and are unable to payoff the debt within the timeframe given, and will not stay on top of switching the credit card stay away from the 0% rate if you will still owe a substantial amount. The premium rate applied to your account after your introductory time frame will negate the benefit of the 0% over time.

One final note is make sure you stick with your current payments that you are making now. If you decrease your payments as your balance decreases you will decrease the effectiveness of your efforts. Do not decrease the amount as your minimum payments go down and you will make great strides in reducing your debt.

Get more information click one of these two:

0% interest credit card offers or fixed interest credit card offers

When it comes to 0% credit cards offers you will find no better offers directly from thecredit card companies than these: