Sneaky Credit Card Trick #8 - Fixed Rates are NOT Fixed

[This post is written and copyrighted by FIRE Finance (]

Fixed Rates are NOT FixedIt is a known fact that credit card companies attract new clients by advertising low "Fixed" APRs. Newbies might think that APRs on their balances are fixed till they pay it off, right? No dear, we are nowhere near the truth!

What is sneaky about fixed rates?

According to credit card jargon, "fixed rate" means that the credit card company has to give us a 15 days' notice before raising our rate. According to a typical credit card agreement, our card company does not need a reason to raise our rate. They can simply do it! Sneaky isn't it?

Way(s) out?

We can call our credit card company and request them to lower our APR. But they don't need to oblige us. has a good guide teaching us how to go about asking for a lower credit card rate.

Better Solution?

If they don't lower our APR we can start looking for a new credit card with a lower APR. We should be ready to move on once we get a better card. However, remember to cancel the old one.


Image Source(s): iStockPhoto

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