There are indications that more financial institutions are beginning to make credit card options more available, but there is some concern on the part of analysts as it has been reported that credit card interest rates are on the rise and has left consumers wondering whether low interest credit card opportunities are available. Some credit card lenders have reportedly increased annual percentage rates on various cards, which has resulted in a rise in national credit card averages, but some reports have shown that these rate increases have been in small increments over the past years and thanks to new credit card laws, introductory rates may be higher than in previous years as well.
However, there are advisers that point out a consumer’s credit rating will also have some form of impact on the interest rate a cardholder receives on their card, even if national averages are higher than in previous months. Understandably, there are some cardholders who may simply have to handle these higher interest rates as they have had problems in their financial life that have caused difficulties related to their credit score, but there are also some financial institutions that specialize in low interest credit cards and, according to Bankrate.com, current averages on low interest credit cards are around 10.76%.
Yet, increases in credit card interest rates and higher introductory rates that some cardholders may be seeing are being attributed to the fact that the CARD Act has put restraints on many lenders who had previously been able to increase interest rates with little or no notice and for seemingly no reason at all. While many cardholders can expect to see increases on their credit card interest rate if they begin practicing poor financial habits, have missed payments, or suffered in other areas of their financial life that caused their credit score to fall, some cardholders complained that lenders simply increased their rate for no reason and left them in a difficult financial position.
Cardholders may still see rate increases on their credit card, but fair warning must be given in advance by their lender, which can offer a cardholder the option of either transferring the balance of their credit card or will allow them to make plans to lower the principle on a card where a rate might rise. Yet, consumers are also being warned against introductory rates at the present time which may be low for some credit cards and cause more individuals to choose a particular card over another, but rates will increase after the introductory period ends and, if cardholders are not careful to look at what this means for their financial situation, they may find themselves in a troubling predicament if a high principal is associated with a card whose rate has suddenly gone up.
However, for consumers who are simply looking for a low interest rate on their card, shopping around and comparing different offers, getting their personal financial life in order so that they have an excellent credit score, and simply practicing smart financial habits can either bring about more affordable credit card offers or allow cardholders to avoid any setbacks related to higher national averages on credit cards as implementing financially savvy spending and repayment practices can help keep costs associated with interest at a minimum.