There are many reports indicating that interest rates on credit cards are on the rise thanks to rules that have prevented practices that were commonly used by financial institutions to make their credit card department more profitable, like the ability to levy fees and interest increases without much constraint, so for this reason many consumers have sought out low interest credit card opportunities as a way to gain the affordability they need in their credit card purchases.
Low interest credit card rates will obviously vary, but there are many introductory offers for new cardholders that may bring more affordable credit card options at the present time for various purposes and uses. Bankrate.com reports that, on average, low interest cards are around 10.87% with many low interest credit card rates ranging between 11% to 20%. Yet, consumers who are looking for a new credit card must make sure that they compare different low interest credit card offers and rates to make sure that they are finding the card that is going to be beneficial for their particular needs.
Numerous opportunities for new cardholders have come from a variety of credit card lenders as top financial institutions like Chase, Capital One, Citigroup, and Bank of America are just a few of the more common credit card lenders that can be used for a variety of purposes. However, many banks are offering low introductory interest rates or a 0% APR on these low interest credit cards in the hopes of drawing more customers to their particular credit card services.
Understandably, these cards can be helpful for certain consumers as many men and women who may have multiple credit cards are using these low credit card interest rate offers and introductory opportunities to consolidate credit card debts onto a card with a lower interest rate, in the hopes of paying off their debts at a lower overall cost, but financial advisers counsel cardholders to make sure they review aspects of these cards before making a decision.
While many of these low advertised rates on credit cards may seem attractive, a consumer’s credit score and credit history will heavily play into what options are available. If a low interest credit card is available, consumers will need to make sure they look at what rate they will receive after signing up, how long the low introductory interest rate period will last, and make their decision based on these factors as consumers do not want to lock-in a credit card with a low interest rate that is only going to be offered for the short-term as this could create problems if a large amount of debt is on their credit card when the intro period ends and their rate increases.