The end of fixed-rate credit cards?

The end of fixed-rate credit cards?
Credit card companies are making the switch, changing some of their fixed rate cards to a variable rate.

By doing that, they're set to take advantage of rising interest rates and avoid being locked into a fixed rate when the credit cardholders bill of rights that goes into effect next year.

"The switch from a fixed to a variable rate card isn't necessarily going to impact your rate today, but its going to definitely have an impact on your rate a couple of years down the road when interest rates start to rise," says Greg McBride is senior financial analyst with Bankrate.com.

"The prime rate is currently at 3.25 percent and someday it's going to rise to 5 or 6 or someday even 7 percent and your credit card rate is going to ratchet higher right along with it."

McBride says you need to realize that and take action now to protect yourself.

"As a consumer what you have to do is focus on paying down your balance as aggressively as you can and do it now while interest rates are low. Interest rates are only going to go higher and you don't want to have to drag a safe through sand by paying that balance back at a later date and a higher interest rate."

For more information

Fixed-rate Credit Cards Going Away?

Credit Card Pain: Some Say Goodbye to Fixed Rates