Fixed interest rate


In a Credit Agreement, the term ‘fixed interest rate’ is used to describe an Interest Rate that remains constant throughout your contract.

Unlike Variable Interest Rates, a fixed rate will not change, regardless of fluctuations within the market.


Fixed rate car finance

To help you budget accurately, car finance agreements usually have a fixed interest rate. This is agreed by your lender at the start of the agreement, based on the strength of your Credit Profile.

Your interest rate can often have a big impact on the cost of your loan. If you have an excellent credit score, you’ll likely be eligible for a much lower rate compared to someone with a history of Bad Credit.


Fixed interest rate vs variable rate

Budgeting is often easier with a fixed interest rate, as you know exactly how much you’re paying each month and there’s no risk of the amount fluctuating.

A variable rate could work out cheaper if interest rates fall, but conversely, if rates increase, even a small rise could have a significant impact on your Monthly Payments.

And if you haven’t budgeted for such increase, you could find yourself unable to maintain your repayments.


Is a fixed interest right for me?

Only you can decide which type of rate is best suited for you. What works best for one person, may not always be right for another, so it’s important to consider your options carefully.

A fixed interest rate is typically the preferred option, as you can budget more effectively, and you avoid the risk of interest rates rising.

But if you’re willing to take the risk and your budget can accommodate higher monthly costs, a variable rate could work in your favour.


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