Credit cards which charge a variable interest rate tied to the prime rate are sometime called a prime rate credit card. Although they are not true prime rate cards the interest that they charge is tied to the prime rate on top of which they charge a small premium. Generally a prime rate credit card is very advantageous and offers the cardholder lots of attractive features including big ticket discounts on luxury items and the chance to get rebates or cash back on purchases. Some of these prime rate credit cards do not charge an annual fee making them even more appealing to the average cardholder. However, these cards not available to everyone. The majority of the prime rate credit cards are gold or platinum cards that are only given to select clientele - those who have excellent credit ratings and, sometimes, a significant cash flow.

Credit cards have come a long way from the days when credit was something to be frowned upon and only those who had plenty of wealth were able to secure any kind of credit. Today, credit is woven into the very fabric of our societies and many people can only make ends meet through the use of their credit cards. Although that is never an ideal scenario, using credit wisely provides the cardholder with better protection against fraud than you would get paying cash or with a check. A good credit rating is essential if ever you want to get a mortgage or want a personal loan. So, using credit is necessary - as long as you use it and do not let credit use you.

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