Which credit card is better?

iVillage Member
Registered: 04-14-2004
Which credit card is better?
5
Thu, 01-06-2005 - 2:19pm

Hello from an occasional lurker . . . .

We have a TON of credit card debt -- equivalent to about half our annual income -- and I am trying to get as much of it as possible on cards with low fixed rates. Which do you think is better: a variable rate equal to the Prime Rate (currently 4.75% I think) or a 4.99 fixed rate? It's going to take us years to pay this off, either way. Thanks for sharing your opinions. ~Anne

iVillage Member
Registered: 05-30-2003
Thu, 01-06-2005 - 5:32pm

Hi, Anne-

My first thought is the 4.99% fixed, just because it is fixed. The other, while low now, has the potential to go up up up!

Maybe once you've been paying on it for awhile, and have some of the total knocked down, you'll be able to surf the balance to a 0% card (if they're still around, lol).

Lisa

Avatar for mrslove2000
iVillage Member
Registered: 03-26-2003
Thu, 01-06-2005 - 8:16pm

I would definately take the fixed rate at 4.99%. Right now prime rate is at 5.25% and is expected to rise several more times this year. Good luck!

Susan

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Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Thu, 01-06-2005 - 8:24pm

I agree with the others. I would go with the 4.99% fixed interest credit card.

MYM

iVillage Member
Registered: 03-16-1999
Thu, 01-06-2005 - 9:31pm
Read the fine print! Make sure that the rate will not go to something outragious if you are late on ANY of your bills. I read something about that happening with some cards.
iVillage Member
Registered: 04-14-2004
Fri, 01-07-2005 - 11:28am
Thanks for all the responses! I didn't realize the prime rate had gone up. Time to transfer that balance! ~Anne