topic Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r in Credit Cards

Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime rate?

galahad15 — Mon, 13 Apr 2015 16:39:28 GMT

Perhaps this may be a certain degree of wishful thinking on my part, but is any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime rate? Especially if the prime rate eventually gets above a certain threshold?

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

galahad15 — Mon, 13 Apr 2015 16:37:16 GMT

bump?

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

Anonymous — Mon, 13 Apr 2015 16:53:02 GMT

My CU credit card has a fixed 7.90% APR, it also has no BT fees and works as an overdraft protection for my checking account. I figured with the low rate it would be good to have if I ever need to carry a balance on anything without a 0% offer.

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

galahad15 — Sun, 10 May 2015 20:04:48 GMT

Just thought I'd try bumping this thread one more time, in case anyone else had any other thoughts of feedback to hopefully offer please?

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

gdale6 — Sun, 10 May 2015 20:13:34 GMT

In the banking world more than likely they will not, these guys are into top profits and fixed rate cards dont offer that. The CU scene is where you will find most fixed rate cards and I believe it will stay that way even when the fed raises rates which IMO isnt going to be too fast.

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

jamesdwi — Sun, 10 May 2015 21:25:51 GMT

Frist Premie may come out with a fixed rate card, at 40% APR and a $200 AF.... anyone interested?

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

rlx01 — Sun, 10 May 2015 21:43:27 GMT

My SF. Fire CU card is a fixed rate 7.25% card.

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

longtime_lurker — Sun, 10 May 2015 23:29:04 GMT

@jamesdwi wrote:
Frist Premie may come out with a fixed rate card, at 40% APR and a $200 AF.... anyone interested?

ME!

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

galahad15 — Sun, 10 May 2015 23:42:32 GMT

@gdale6 wrote:
In the banking world more than likely they will not, these guys are into top profits and fixed rate cards dont offer that. The CU scene is where you will find most fixed rate cards and I believe it will stay that way even when the fed raises rates which IMO isnt going to be too fast.

Yes, I did look into the CU option for fixed-rate cards some time ago, but unfortunately, AFAIK, there are no credit unions that I would be eligible or qualify for membership for, that offer fixed rates, sadly I researched many CUs that were local to me, but they were either offering high variable-rate cards, or, even if the cards were single-digit rates, the terms were still that of a variable-rate card. And so because of this limitation of being able to join CUs that do offer single-digit, fixed-rate cards, I am afraid I am kinda out of luck, on that front at least.

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

FinStar — Mon, 11 May 2015 03:13:12 GMT

@gdale6 wrote:
In the banking world more than likely they will not, these guys are into top profits and fixed rate cards dont offer that. The CU scene is where you will find most fixed rate cards and I believe it will stay that way even when the fed raises rates which IMO isnt going to be too fast.

Agree. Plus, due to economic shifts in the marketplace, namely during the economic meltdown during 2008 and the Card Act reform in 2009, the majority of financial institutions have shied away from offering fixed-rate, unsecured CC lending altogether in favor of other strategic revenue channels. Other than some individuals who have been grandfatehered with some legacy products for some banks, there are some CUs, community banks and FSB institutions that currently offer some non-variable/fixed rate CCs, but it's fairly certain these would require very excellent creditworthiness to even qualify.

Re: Any possibility that fixed-rate cards may make a comeback of sorts, after the FED raises prime r

creditconcept — Mon, 11 May 2015 05:50:42 GMT

No, because as soon back as 2006, the prime rate was 8.25% and as close back as 1990, the prime rate was over 10%. Those were both prosperous times, if you believe that the economy will ever get back to pre-recession performance, then the prime rate will (logically) follow.

I can not imagine a bank giving you an 9.99% fixed APR when they are borrowing money at 8.25% (circa 2006). Banks (stockholders,employees) will not settle for a whopping ANNUAL 0.74% profit margin on your personal CC. That's around $1.25/Mo interest on a $5000 balance. Take out the 41c it cost them to mail you your statement, and they are left with less than $1 profit every month per cardholder.....that doesn't work out.

That's why I say: NO. But....it wouldn't be the first time I'm wrong. time will tell....!