Know Your Credit Card: Types of Interest Rates

According to the data published by the Federal Reserve Bank of Boston in January 2010, the citizens and consumers of the US hold 609.8 million credit cards. Furthermore, each consumer holds an average of 3.5 credit cards at a time which builds upto an average credit card debt of $14750 for each household. Such is the credit card penetration in the American economy. While most of the consumers do not know the intricacies of the credit cards they hold, very few do their homework before opting for a credit card. A credit card can be either issued on a fixed or a floating rate of interest. The floating rate of interest is also called variable interest rate. Most of the...