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    Credit Basics

    Fixed Rate

    An interest rate that remains constant for the life of the loan or a defined period.

    What It Means

    Fixed rates offer predictable payments and protection from rate increases. Most personal loans, auto loans, and 15- or 30-year mortgages carry fixed rates. True fixed rates on credit cards are rare-most card APRs are variable. Fixed rates may start higher than variable rates but eliminate uncertainty, making budgeting easier over long horizons.

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