topic Re: Lowest Fixed Rate CC Currently Available in Credit Cards

Lowest Fixed Rate CC Currently Available

VanderSnoot — Wed, 09 Feb 2022 21:20:34 GMT

I had a great conversation last week with someone about her 5.99% fixed rate BofA credit card that she's had since 1984. Even the folks at the Federal Credit Union were stunned. That got me thinking about today's market, where it's a challenge even to find a fixed rate credit card, let alone a card with a fixed rate below 8% (or even 10%!). The only one that comes to mind is a former FOTM: AOD Signature Visa, with a fixed rate between 7.49 - 17.99%. What other low, fixed rate cards are currently taking applications?

Re: Lowest Fixed Rate CC Currently Available

dragontears — Wed, 09 Feb 2022 22:08:01 GMT

@VanderSnoot wrote:
I had a great conversation last week with someone about her 5.99% fixed rate BofA credit card that she's had since 1984. Even the folks at the Federal Credit Union were stunned. That got me thinking about today's market, where it's a challenge even to find a fixed rate credit card, let alone a card with a fixed rate below 8% (or even 10%!). The only one that comes to mind is a former FOTM: AOD Signature Visa, with a fixed rate between 7.49 - 17.99%. What other low, fixed rate cards are currently taking applications?

Paging @galahad15

Re: Lowest Fixed Rate CC Currently Available

Anonymalous — Wed, 09 Feb 2022 22:21:39 GMT

Dow Chemical Employee CU has a 6.9% fixed rate card, but it's hard to come up with other examples. There are a handful of credit unions with cards in the 3.X% range (Space Age, for example), but they're all variable based on the prime rate.

Re: Lowest Fixed Rate CC Currently Available

CH-7-Mission-Accomplished — Wed, 09 Feb 2022 22:36:42 GMT

@VanderSnoot wrote:
I had a great conversation last week with someone about her 5.99% fixed rate BofA credit card that she's had since 1984. Even the folks at the Federal Credit Union were stunned. That got me thinking about today's market, where it's a challenge even to find a fixed rate credit card, let alone a card with a fixed rate below 8% (or even 10%!). The only one that comes to mind is a former FOTM: AOD Signature Visa, with a fixed rate between 7.49 - 17.99%. What other low, fixed rate cards are currently taking applications?

My Navy classic @ $50K is at 5.99%. No lenders would ever saddle themselves with a fixed rate card they couldn't adjust when their cost of funds goes up. Everything is fixed until it isn't.

Re: Lowest Fixed Rate CC Currently Available

VanderSnoot — Thu, 10 Feb 2022 00:20:35 GMT

@CH-7-Mission-Accomplished wrote:
My Navy classic @ $50K is at 5.99%. No lenders would ever saddle themselves with a fixed rate card they couldn't adjust when their cost of funds goes up. Everything is fixed until it isn't.

Unfortunately, the only card Navy has now with a 5.99% rate is the Platinum, but it's variable, not fixed. They were the first place I looked for a fixed rate card, but even they don't have one on the market.

Re: Lowest Fixed Rate CC Currently Available

simplynoir — Thu, 10 Feb 2022 00:56:27 GMT

Here's a post @galahad15 had several months ago posting the best variable/fixed APR cards that he was aware of

https://ficoforums.myfico.com/t5/Credit-Cards/Simmons-Bank-Visa-or-regular-low-interest-cards/m-p/6415986#M1793733

Re: Lowest Fixed Rate CC Currently Available

Mero_mero — Thu, 10 Feb 2022 02:02:42 GMT

Wells Fargo used to offer a "prime rate" Visa that I picked up in 2008, I think. It's locked at prime rate. I did a product change to Active Cash about a year ago and kept the locked prime rate APR. It's currently 3.25% variable. Though it's variable like prime rate, I can't recall the last time it was above 5%.

Re: Lowest Fixed Rate CC Currently Available

Drifter73 — Thu, 10 Feb 2022 03:07:39 GMT

GEO specific - MCCU (Members Choice Credit Union) = as low as 6.75%apr for residential and commercial addresses within the West Houston, Katy, and Cy-Fair areas of SouthEast Texas.

Re: Lowest Fixed Rate CC Currently Available

Curious_George2 — Thu, 10 Feb 2022 03:33:42 GMT

@Anonymalous wrote:
Dow Chemical Employee CU has a 6.9% fixed rate card, but it's hard to come up with other examples. There are a handful of credit unions with cards in the 3.X% range (Space Age, for example), but they're all variable based on the prime rate.

They're based in Michigan, but not geofenced. I joined from far away with a small ($25?) donation to the local art museum.

Re: Lowest Fixed Rate CC Currently Available

galahad15 — Thu, 10 Feb 2022 07:55:25 GMT

Sorry for taking so long to write and get back to everyone (super-busy atm on critical-priority and time-sensitive projects at the office lately, so unfortunately have not had as much time to spend on forums currently as I would ideally like, etc.).

Many thanks @simplynoir for very kindly and helpfully providing a link to the list of the low-rate cards that I was able to find! Would recommend to the OP if s/he could please review that link, as it has a list of some of the lowest-APR cards that I learned about or came across, and some of which I also have in my own personal card collection.

Re: Lowest Fixed Rate CC Currently Available

TheBoondocks — Thu, 10 Feb 2022 15:31:35 GMT

@Curious_George2 wrote:
@Anonymalous wrote:
Dow Chemical Employee CU has a 6.9% fixed rate card, but it's hard to come up with other examples. There are a handful of credit unions with cards in the 3.X% range (Space Age, for example), but they're all variable based on the prime rate.
+1

They're based in Michigan, but not geofenced. I joined from far away with a small ($25?) donation to the local art museum.

But that hasn't update since 2018 tho.

Re: Lowest Fixed Rate CC Currently Available

Anonymous — Thu, 10 Feb 2022 15:44:09 GMT

@CH-7-Mission-Accomplished wrote:
My Navy classic @ $50K is at 5.99%. No lenders would ever saddle themselves with a fixed rate card they couldn't adjust when their cost of funds goes up. Everything is fixed until it isn't.

True, but I think the major wins for fixed rates are:

1) They have to give notice of a rate change, whereas a variable will simply shift with the underlying index

2) With a fixed, you can opt out of a rate change (presumably causing the card to be closed) and pay off the balance at the old rate

Re: Lowest Fixed Rate CC Currently Available

Curious_George2 — Thu, 10 Feb 2022 16:18:46 GMT

@TheBoondocks wrote:
@Curious_George2 wrote:
@Anonymalous wrote:
Dow Chemical Employee CU has a 6.9% fixed rate card, but it's hard to come up with other examples. There are a handful of credit unions with cards in the 3.X% range (Space Age, for example), but they're all variable based on the prime rate.
+1

They're based in Michigan, but not geofenced. I joined from far away with a small ($25?) donation to the local art museum.
But that hasn't update since 2018 tho.

You mean the membership eligibility requirements? I joined in 2020. Can't say for sure, but I don't see any reason to believe they've made undisclosed changes since then.

It's an old school CU. Takes very seriously the idea that the organization exists to serve its members. They literally give back about 40% of the interest members pay at the end of each year, and the rates they charge are good. Not all products are eligible for the giveback, but if one has to pay interest, getting such a big chunk of it back is a pretty sweet deal.

Re: Lowest Fixed Rate CC Currently Available

K-in-Boston — Thu, 10 Feb 2022 17:14:22 GMT

@Mero_mero wrote:
Wells Fargo used to offer a "prime rate" Visa that I picked up in 2008, I think. It's locked at prime rate. I did a product change to Active Cash about a year ago and kept the locked prime rate APR. It's currently 3.25% variable. Though it's variable like prime rate, I can't recall the last time it was above 5%.

Prime was above 5% as recently as 2018 and 2019 (incidentally when some of us with Chase APRs below 14% started getting increase letters), but before that it hadn't been above 5% since 2008.

Re: Lowest Fixed Rate CC Currently Available

Anonymous — Thu, 10 Feb 2022 17:33:43 GMT

@K-in-Boston wrote:
@Mero_mero wrote:
Wells Fargo used to offer a "prime rate" Visa that I picked up in 2008, I think. It's locked at prime rate. I did a product change to Active Cash about a year ago and kept the locked prime rate APR. It's currently 3.25% variable. Though it's variable like prime rate, I can't recall the last time it was above 5%.
Prime was above 5% as recently as 2018 and 2019 (incidentally when some of us with Chase APRs below 14% started getting increase letters), but before that it hadn't been above 5% since 2008.

Yes, one source:

Historical Prime Rate (jpmorganchase.com)

And the big period from 2008 to 2015 when it stayed at 3.25%

Re: Lowest Fixed Rate CC Currently Available

PullingMeSoftly — Thu, 10 Feb 2022 17:57:54 GMT

Lowest fixed, non-promotional I've seen is San Francisco Credit Union's Visa Platinum Rewards @ 3.20%

Paths to eligibility:

Live, work, worship or attend school in San Francisco or San Mateo counties.
Relative of a current member, defined as spouses, children, sisters, brothers, grandparents, grandchildren, step-relatives and adoptive children.
Qualifying organization: MyPath (national nonprofit focused on paving economic pathways for low-income youth)

I believe there is a geo restriction when using the MyPath route, which might require CA or Northern CA residency.

(Edit: Adding SFFCU's rate sheet, the range for the Visa Platinum Rewards is 3.20% to 17.99%)

Re: Lowest Fixed Rate CC Currently Available

galahad15 — Thu, 10 Feb 2022 18:00:35 GMT

@PullingMeSoftly wrote:
Lowest fixed, non-promotional I've seen is San Francisco Credit Union's Visa Platinum Rewards @ 3.20%

Paths to eligibility:
Live, work, worship or attend school in San Francisco or San Mateo counties.
Relative of a current member, defined as spouses, children, sisters, brothers, grandparents, grandchildren, step-relatives and adoptive children.
Qualifying organization: MyPath (national nonprofit focused on paving economic pathways for low-income youth)

I believe there is a geo restriction when using the MyPath route, which might require CA or Northern CA residency.

Very intriguing @PullingMeSoftly, thanks for sharing!

Quick question for you please, after taking a quick look at the San Francisco CU's credit cards page: according to the fine print denoted in the asterisk near the bottom of the page, they mention that "*APR=Annual Percentage Rate. APRs accurate as of October 1, 2021. Variable rate loan, max. APR 17.99%. No annual fees. Regular variable APRs 3.20% to 17.99%, subject to change". Was just curious if this means that they may have offered a fixed-rate APR of 3.20% F sometime before 10/1/2021, but then possibly changed it to 3.20% V, etc.? Thanks again for pointing out this gem and unicorn card!

Re: Lowest Fixed Rate CC Currently Available

TheBoondocks — Thu, 10 Feb 2022 18:06:15 GMT

@Curious_George2 wrote:
@TheBoondocks wrote:
@Curious_George2 wrote:
@Anonymalous wrote:
Dow Chemical Employee CU has a 6.9% fixed rate card, but it's hard to come up with other examples. There are a handful of credit unions with cards in the 3.X% range (Space Age, for example), but they're all variable based on the prime rate.
+1

They're based in Michigan, but not geofenced. I joined from far away with a small ($25?) donation to the local art museum.
But that hasn't update since 2018 tho.
You mean the membership eligibility requirements? I joined in 2020. Can't say for sure, but I don't see any reason to believe they've made undisclosed changes since then.

It's an old school CU. Takes very seriously the idea that the organization exists to serve its members. They literally give back about 40% of the interest members pay at the end of each year, and the rates they charge are good. Not all products are eligible for the giveback, but if one has to pay interest, getting such a big chunk of it back is a pretty sweet deal.

No, I didn't mean that but I would love to join. Did you get the credit card? I meant the rate, but its subject to change even after the published date. I want to know what's the current rate.

Re: Lowest Fixed Rate CC Currently Available

PullingMeSoftly — Thu, 10 Feb 2022 18:12:18 GMT

@galahad15 wrote:
@PullingMeSoftly wrote:
Lowest fixed, non-promotional I've seen is San Francisco Credit Union's Visa Platinum Rewards @ 3.20%

Paths to eligibility:
Live, work, worship or attend school in San Francisco or San Mateo counties.
Relative of a current member, defined as spouses, children, sisters, brothers, grandparents, grandchildren, step-relatives and adoptive children.
Qualifying organization: MyPath (national nonprofit focused on paving economic pathways for low-income youth)

I believe there is a geo restriction when using the MyPath route, which might require CA or Northern CA residency.
Very intriguing @PullingMeSoftly, thanks for sharing!

Quick question for you please, after taking a quick look at the San Francisco CU's credit cards page: according to the fine print denoted in the asterisk near the bottom of the page, they mention that "*APR=Annual Percentage Rate. APRs accurate as of October 1, 2021. Variable rate loan, max. APR 17.99%. No annual fees. Regular variable APRs 3.20% to 17.99%, subject to change". Was just curious if this means that they may have offered a fixed-rate APR of 3.20% F sometime before 10/1/2021, but then possibly changed it to 3.20% V, etc.? Thanks again for pointing out this gem and unicorn card!

Good catch @galahad15 , I thought it was fixed from my initial perusal of this card over a year ago. The apr has remained stable ever since so I didn't stop to read the fine print. I don't think they'll be changing the rate anytime soon, based on how long it's been going.

Re: Lowest Fixed Rate CC Currently Available

Anonymous — Thu, 10 Feb 2022 18:25:14 GMT

Food for thought!

While we may seek Fixed rate cards ... in reality they can be changed for rates (Fixed) or to Variable rate cards by following the legal process and 45 days.

This happen to me where a bank had a Fixed rate of 6.9% for over ten years and rather than going through the process of adjusting the Fixed rate, they converted their cards to Variable rates and the rates adjust dependent on the Federal Reserve actions.