Reports on credit cards have mentioned that more lenders may be increasing rates as the CARD Act has prevented many of these credit card lenders from increasing the rates of cardholders with the use of methods that have been implemented in the past as many felt certain types of increases were unjust and caused strains in the lives of many credit card users. Yet, cardholders are obviously still seeking out low interest rates on credit cards, but according to credit card averages from sources like Bankrate.com, low interest credit card rate averages are around 10.76% at the present time.
However, as many lenders have their hands tied in certain aspects of consumer credit cards, it’s believed that higher introductory interest rates may be associated with certain types of unsecured cards, or if a low rate is offered it may only be for a short period before a set rate comes into effect. Yet, as concerns over higher interest rates on credit cards have many consumers wondering whether they should seek out a line of credit, there are factors which also must be considered when it comes to acquiring a credit card and advisers often point out that certain consumers will, obviously, be able to get an interest rate on a credit card that is lower than the average in some cases.
Card issuers can increase an APR when a promotional rate expires, but new laws require that lenders give 45 days notice before a rate increase occurs. Many lenders believe that if they give this notice of a rate increase a cardholder will use this time to attempt to erase the balance on this particular credit card and may only use that card a minimal number of times throughout the year, so lenders are increasing the base interest rate which cardholders are offered so as to avoid any difficulties related to new rules.
However, individuals who are in the market for a new credit card can obviously shop around with various lenders to get the best rate and for those who may be in a good financial position this could equate to a very affordable rate on their new credit card. Yet, consumers do still need to be aware of potential rate increases after an introductory period or fees which may be associated with the card before entering into any credit card agreement, but when it comes to finding a low interest credit card this may be dependent upon the borrower.
Consumers who have a low credit score may have more options now than in previous months to acquire a line of credit, but obviously this will come at a higher cost. Yet, those who are seeking a credit card and may have a good credit score and history may be able to lock in an interest rate lower than the average on certain types of cards, but again this is no guarantee so comparing various offers will obviously be in any consumer’s best interest. Yet, no matter the interest rate a cardholder receives, proper use of their credit card will be necessary so that financial difficulties related to interest rates or balances on a credit card will not arise and cause financial strain in the life of a cardholder.