Credit card offers are reportedly becoming more available even for subprime borrowers and, for this reason, credit cards that are used for debt management may also be accessible to consumers who may have a low credit score, but questions over whether affordable rates on credit cards still exist have arisen as there are indications that some credit card lenders or increasing rates on new credit card offers. However, many bad credit borrowers seeking a credit card opportunity may be drawn in by low introductory rates that are being offered on new cards or balance transfer cards, as these types of cards can be helpful for individuals who may have a low credit score or a high amount of debt.
As far as bad credit borrowers go, the rate that a consumer gets on their credit card, if a credit card opportunity is available at all, depends heavily on their FICO score and this could result in a cardholder getting a card that is simply too expensive for their needs. While bad credit borrowers can turn to secured credit cards, which can come with an affordable interest rate as as well due to the fact that they are backed by collateral, more lenders are offering balance transfer options to cardholders and are offering incredibly low rates for an introductory period. Obviously, this can help bad credit borrowers either consolidate debt or simply gain access to a card as, again, there are cards being marketed to individuals who have less than perfect credit, so comparing these offers may yield the opportunity for certain consumers to find the credit they may need to put themselves in a better financial position.
Yet, consumers must make sure they read the fine print and look at the duration of this introductory rate as some consumers who have used a low interest credit card, like those that offer balance transfer options and come with a low rate, have consolidated various debts on this card but if they did not erase their debt in a timely manner, they were stuck paying on debt related to a high interest rate. Thanks to new constraints on consumer credit cards, many financial institutions are increasing credit card interest rates for new borrowers or offering these low introductory rates only to revert back to a higher interest rate later simply as a way to offer more credit card opportunities to those who previously may not have qualified.
However, it must be understood that consumers who may qualify for a credit card even though they have a low credit score are not in the position to always benefit from doing so. Despite the fact that credit card balance transfer options or low interest credit card offers have been one way that consumers have managed to consolidate debt, comparing current interest rates, interest rates after the introductory period has expired, and looking at the timeframe a cardholder will have to erase consolidated debt on a new credit card before a higher rate kicks in are all factors that consumers have been advised to consider before choosing a credit card for their bad credit or debt management needs.