Are credit card rates fixed or variable?

Core Insights - A significant portion of American consumers, over 50%, carry a balance on their credit cards, leading to rapid interest accrual depending on the card's APR type [1][2] Variable Interest Rate Credit Cards - The majority of credit cards feature variable APRs, which fluctuate based on market conditions, typically tied to an index like the Prime Rate [2][3] - As of December 2023, the Prime Rate is 8.50%, resulting in an APR of 20.50% for cards that charge Prime Rate + 12.00% [4] - Credit card issuers are not required to notify customers of rate changes due to increases in the index, as this is outlined in the card's terms [4] Fixed Interest Rate Credit Cards - Fixed-rate credit cards are less common and primarily issued by credit unions, often featuring lower-than-average APRs [6][9] - While fixed-rate cards provide stability, they can still have their APR increased by the issuer, who must notify customers at least 45 days in advance [8] - Fixed-rate cards are generally harder to obtain due to membership requirements of credit unions [16] Interest Management Strategies - To minimize interest charges, consumers can pay off their statement balance in full, pay more than the minimum payment, or request a rate reduction from their issuer [10][14]