Fixed Rate Student Credit Cards (That Even Allow Balance Transfers!)

by Mack Bartlett

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Before we talk about fixed rate student credit cards, we should talk about fixed rate credit cards in general. A fixed rate credit card isn’t such a common thing. Why?

Because interest rates change, that’s why. Think about it – every so often you hear an announcement that the Fed is raising or lowering interest rates. When they do that, all interest rates change with the ripple effect. It’s a good thing and a bad thing for all of us that use the financial institutions (which is pretty much everybody).

For example, when rates go up theirs an upside and a downside. On the downside, it gets more expensive to borrow money. Auto loans, mortgages and credit cards all hike their rates to reflect what the Fed did. On the upside banks will usually pay more interest on savings accounts and other deposits. Any of you that have an ING Direct savings account know what I’m talking about. As interest rates have climbed, I’ve seen them raise the rate they pay on my online savings account to over 5%. Not a bad deal.

Now, in some cases credit card companies will offer a fixed rate on a credit card for as long as you have the card open (for example: Prime + 3.99%). They do it to entice people who don’t like the idea of having a credit card at 18% or 21%. If you’re going to get a fixed rate credit card, though, you probably need a pretty good credit score and some credit history.

So What About Fixed Rate Student Credit Cards?

I found IndexCreditCards.com, which gives a long list of student credit card offers. Only two on the list mentioned a fixed interest rate:

  • AmTrust Bank (formerly Ohio Savings Bank) Student Credit Card – offers a fixed rate of 7.9% or 13.99%, depending on your credit worthiness.
  • Sovereign Bank Student Credit Card – 9.9% or 15.99%, also based on credit worthiness.

The reality is it’s tough for students to get fixed rate credit cards because they’re still a risk to the credit card company. If you can’t get one of the two I’ve listed above you may have to use a variable (high) rate card until you’ve proven you can handle a credit card.


Related posts:

  1. Can You Do a Balance Transfer From Someone Else’s Credit Card?
  2. Free Student Credit Cards
  3. How is Your Credit Card Balance Calculated to Figure Out the Finance Charge?
  4. Chase Student Credit Cards
  5. Student Credit Cards With College Logos
  6. Guaranteed Student Credit Cards Applications

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