Consumer Payment Card News

Fixed Card

The lowest on-going fixed interest rate for a bank credit card was launched this week. Capital One, which usually caters to sub-prime borrowers, offering credit limits as low as $300, is now offering a 4.99% fixed APR on its “Platinum MasterCard” to super-prime consumers, by invitation only. The interest rate will apply to new purchases as well as balance transfers. Plus, the new card offers no balance transfer fees or cash advance fees, and no annual fee. The new offer from Capital One comes at a time when most top issuers are guaranteeing 0% interest rates for at least the next year. However, many of these 0% offers are laced with fine print requiring balance transfer fees and other hidden costs. As with any nationally-issued bank credit card, Capital One can change the APR at any time, with as little as 15 days notice. The bank says the 4.99% rate is good for the “life of the product.” This simply means that Capital One can kill the product at will. Today, most consumers understand that a “fixed” interest rate on a credit card has little credibility since it is rarely guaranteed and subject to change at any time. Bottom line: when it comes to selecting a credit card set your vision for the short-term and do not forget that issuers hold all the cards. For more information on the Capital One 4.99% Platinum MasterCard visit

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