It is the practice of mostly all the industries or banks to charge variable interest on your outstanding credit balance at some rate of interest whether monthly or yearly. It is possible nowadays to get a fixed rate of interest on your credit. So better apply for the credit card which has the fixed rate of interest credit card.

The answer to the problem of variable interest may have solution which we probably think. There are two factors which come in mind: first ids to know the prime lending rate at the moment of availing credit; and second, what is the probability that the interest rate may change or vary from prime lending rate?

If you think that borrowing credit rates are economical at the time of availing the credit and you also have the intuition that Prime Lending Rate is likely to rise in the future or very soon, then it is good to have a variable rate credit card as it is going to offer you more benefit then the fixed rate credit card because the interest rate can even fall. If you are very sure that interest rate will never come down then it is better to have a fixed interest rate credit card because this way you can save lot of money that can be used in some other constructive work.

One must try to get the fix credit report for all the transaction to have the proof of every payment because loss of data in bank may let you pay the again.

Share This