Consumers are reportedly being offered more access to credit cards as banks are slowly beginning to ease their lending practices and access to credit, so for this reason there are more cardholders and potential credit card users who have begun to compare interest rates on various types of cards. According to sources like Bankrate.com, credit card averages around January 31, 2011 have averaged approximately 13.36% on fixed credit cards and 14.41% on variable cards.
While balance transfer cards are reportedly averaging at a rate of 15.91% and cashback cards at 16.50%, there are obviously no true set credit card interest rates for consumers who have been seeking out access to cards for various purposes. Understandably, these average credit card interest rates may be much lower for some or on par for others depending upon one’s credit history, credit score, and the type of card they are seeking to acquire.
As an example, balance transfer cards had been quite popular over the past months as they do offer not only credit card debt consolidation opportunities, but may draw in more cardholders due to the fact that introductory rates on some of these cards may come at 0% interest. Good news for those who are seeking out a credit card is that past legislation has stopped the sudden increases in interest rates on credit cards and now requires that more information be provided related to various unsecured credit cards and the amount of debt, repayment time frame, and overall costs that may be incurred for a specific cardholder.
While many of these interest rates are average rates on various types of cards, cardholders do have options for getting lower interest rates as, obviously, more affordability on a card can be the result of a lower interest rate, especially for those who may be either beginning to establish a credit history or repair their bad credit score. Also, when minimum monthly payments are made on cards with a higher interest rate, this can cause the overall costs to increase for a cardholder who may be unable to pay off their balance from month to month.
For this reason, advisers often counsel cardholders to implement smart spending habits so that they will not begin spending more than they can repay as, obviously, living outside of one’s financial means typically leads to financial hardships and troubles down the road. While, again, these credit card interest rates are not set in stone and can be much more affordable for certain individuals, financial counselors still advise those who are seeking a credit card to compare credit card offers as, again, credit card interest rates will vary, rewards and fees will also be different from one card to another, and certain types of credit cards may not be in a potential cardholder’s best interest in terms of their financial position or how they may use their credit card.