Fixed vs variable

[kc12286]

Not sure this is the right forum, so if it's not correct mods please move it.

I've been looking at various rewards cards, mainly for gas. I know Penfed is generally the best and so far doesn't look like they can be beat. However at this point, I'd rather apply for Discover. Most likely I will apply for the Open Road card as they seem to be offering a good deal. (Double Cash Back, $10 cash back bonus for 90s,etc)

Anyway, they're offering multiple purchase APRs, some fixed (15.99%, 16.99%) and some variable (9.99-20.99). What I'm trying to determine is which is the best offer. The intro APRs don't really matter because I plan to only use it for gas, possibly restaurants and PIF each month. With the fixed rate, is it truly fixed or can they bump it up if the prime changes?

EDIT: Never mind, after chatting with a rep, it seems the fixed rate offers are an error. All the rates are variable. They're working to fix the error.

[Uborrow-Upay]

Hi, kc12286!

I know you've already answered your own question.  I just wanted to mention that the rates make no difference whatsoever if you PIF every month.

Take care. 

[kc12286]

You're right it doesn't matter. It would certainly be ncice to have a low(er) rate if I wasn't or couldn't pay in full one month.

[Uborrow-Upay]

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@kc12286 wrote:

You're right it doesn't matter. It would certainly be ncice to have a low(er) rate if I wasn't or couldn't pay in full one month.

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If you get in the habit of PIF just before the statement drops (and I mean, keeping a zero or close to zero reported balance), even that won't be an issue.

You'd still have close to a month to get back in the saddle, and still not pay any interest at all.

Habits are great (as long as they're good ones).  PIF before being billed gives you a really good cushion.

[kc12286]

Ok, what do you mean before the statement drops? Do you mean making a payment before the statement closing date?

[Uborrow-Upay]

Yup.

If you can pay what you've charged on or before the statement closing date, you're golden. 

Even if you have a bit of a crunch in the cash from time to time, you'll still have another 25 days to PIF, without any interest charges at all.

Gives me the warm fuzzies to know I can actually float for a while, without paying for it. 

You can do that, too.  But you've got to get in the habit of doing it for it to work.

[kc12286]

Ok good to know.

I always for get about that 25 day period. I've been working to pay down/off Chase Amazon, because the APR was ridiculously high. Now that I'll basially have that paid off by the end of the month (fingers crossed), the next card will be TD Bank. Low limit and the points are horrible. If they don't give me a CLI I'm closing it.

Still haven't decided on Discover yet, from what I can tell, the max I can get back each month would be $5 and you can't redeem until you hit 50.