In case you have recently been looking for a fixed-rate credit card, I bet that you got quite a puzzling thing – they are almost gone, right?
By the time of April 2025, U.S. banks of almost all significant kinds have turned to the variable APR credit cards, so those with fixed interest rates are still difficult to spot. However, what the majority of users think is not the main reason of this transition.
This report explains what is leading the switch, how it influences your money, and whether it makes any sense to look for fixed-rate credit cards further.
What Is a Fixed-Rate Credit Card?
A fixed lever credit card is a credit card system with a non-variable interest rate that does not alter with the prime rate or anything else – unlike variable-rate cards, where rates change due to economic situations.
Actually, it does sound like a more secure option. Your interest remains unchanged regardless of what the Fed decides.
But here is what most people don’t know: even fixed rates will not last forever.
Yes, Banks Can Still Raise a Fixed Rate
You may be mistaken to think a fixed-rate card always comes with a set APR. Banks nevertheless have legal loopholes through which they can increase your rate – and they take advantage of them.
The Credit CARD Act of 2009 stipulates that the interest rate of yours is set in the first year. But after that, borrowers can elevate it on account of a few reasons:
- If you skip making a payment
- If your credit score experiences a downturn
- If they issue a 45-day written notice
As a result, even “fixed” credit cards have fine print that potentially affects your deal.
Why Most Banks Don’t Offer Fixed APRs Anymore
According to seasoned industry analysts like Ted Rossman from Bankrate, fixed-rate cards are hardly available any longer since the passage of the 2009 Credit CARD Act.
The bank was unable to increase interest rates by surprise due to the law. Most lenders switched to variable-rate structures tied to the prime rate to bypass the law.
“Banks find it easier to raise the rates like this,” says Rossman. “They just refer it to the market index for cause.”
Therefore, the reason almost all credit cards, even popular rewards cards, are using variable APRs is because of this.
Well… Is a Fixed-Rate Card Even Counted?
It is totally based on what you want to achieve.
A fixed-rate credit card may seem to be the better option if your intention is to avoid unexpected interest rate hikes or if you are planning on carrying a balance for a long time.
On the other hand, variable-rate cards generally give more benefits than fixed-rate ones, 0% APR promotions being one of the best examples and lower starting rates for borrowers with good credit are another.
Actually, you might be spending less using these alternative cards than with a fixed-rate option.
More Reasonable Choices Than Fixed-Rate Cards
Below are two types of credit cards that may be easier to get and more useful than fixed-rate ones:
1. 0% Intro APR Cards
These cards come with no interest for the initial period (usually 12–21 months). The best solution to use for large purchases or for consolidating debts.
Top picks for April 2025:
| Card Name | 0% APR Period | Regular APR |
|---|---|---|
| Wells Fargo Reflect® | 21 months | 17.24% – 28.99% |
| U.S. Bank Visa® Platinum | 21 billing cycles | 17.74% – 28.74% |
| Bank of America® Cash Rewards | 15 billing cycles | 18.24% – 28.24% |
If you completely pay your debt during the promotional period, not a dime of interest will be charged to you, fixed or not.
2. Low-Interest Variable Cards
If most of the time you are keeping a balance on your card, it is better to choose a card with a low ongoing interest rate.
Some examples:
| Card | APR Range | Best For |
|---|---|---|
| Upgrade Cash Rewards Visa® | 14.99% – 29.99% | Fair credit |
| Discover it® Cash Back | 18.24% – 27.24% | First-year rewards |
| Citi Rewards+® | 17.74% – 27.74% | Points for small purchases |
These rates vary with the market, but tend to be quite predictable if there are no Fed changes.
Why Local Credit Unions Are the Exception
Fixed-rate cards may be still available in local banks and credit unions.
Small institutions mainly offer fixed APRs to attract new customers – particularly if you are eligible for their membership. But their conditions differ, and they are only available in some areas.
If you really want a fixed-rate card, then check with the following:
- Credit unions in the area
- Banks located in the community
- Financial institutions that are region-based
Just remember that even in these cases, your interest rate may go up at a later time – and it is still within the law.
The Truth Banks Don’t Advertise
One big reason fixed-rate cards are not promoted by credit card companies is that they make more money off variable APRs.
That’s the main reason big banks dropped them without fanfare.
But, still, you can reduce your interest payments if you are wise with your credit usage in the following manner:
- Get 0% APR promotions
- Be sure to pay off your balances on time
- Pick low-interest rate cards that suit your credit score
What Should You Do Now?
Fixed-rate credit cards may seem to be a safe option – however, they are rare, and their security is questionable.
In case your attention is on money-saving and staying out of interest in 2025, the wisest option you can take is to get:
- A 0% intro APR credit card if you aim to extinguish your debt quickly
- A low-interest variable rate credit card if you intend to have a long-term balance
Do not believe the story that the interest rate is unchangeable. Concentrate on the measures that genuinely lower your expenses.
