Find the Best Credit Card Rates
Credit Card Type  

Fixed Rate Credit Cards: A Bygone Era

fixed-rate-credit-cards-a-bygone-eraSome large credit card issuers including J.P. Morgan Chase, Bank of America, and Discover Bank have recently told some of their credit card holders that their fixed rate credit cards were being converted to a variable rate credit card. 

Although the banks are saying the changes are to better manage their business costs and credit card market conditions (another way of saying credit card defaults)  the change is probably brought on by the Credit Card Accountability, Responsibility and Disclosure Act which starting next month will require banks to notify fixed rate credit card holders of any increase in their credit card rates 45 days in advance.

To bad Congress didn’t think of passing a law that prevents credit card companies from changing a credit card from a fixed rate to a varible rate. Though if they did banks would have just found another loophole.

Variable rate credit cards are usually tied to the Prime Rate and rise and interest rates rise.

Looking for Credit Cards? Search and Compare Credit Cards Here

 
Author: Brian McKay
July 26th, 2009
Posted in: Credit Cards

   MBR on FaceBook    monitorbankrates.com on Twitter    Subscribe to MonitorBankRates.com

MBR In the Press

Rate Tables

CD Rates @ MonitorBankRates.com
Mortgage Rates @ MonitorBankRates.com
Savings Rates @ MonitorBankRates.com
Auto Loans @ MonitorBankRates.com
Credit Card Rates @ MonitorBankRates.com
Checking Accounts @ MonitorBankRates.com
Auto Insurance @ MonitorBankRates.com

Bank Review Archives

Bank Reviews & Deals
Best CD Interest Rates
Online Savings Accounts
Online Checking Accounts
Best Credit Cards
Personal Finance
Mortgages
Insurance
Auto Loans

Debt Calculators

Debt Consolidation Calculator
Credit Card Payoff Calculator