Low interest rates on balance transfer credit cards have drawn many consumers who are looking for affordable ways to consolidate their credit card debt, as credit card lenders are looking to draw more consumers back into the credit card market through these introductory rates as reports over the past months have shown that consumer lending was constrained, but thanks to positive outlooks on the part of some analysts, there are new indications that banks are ready to lend and offer lines of credit once again.
According to Bankrate.com, average rates on balance transfer cards are around 15.96%, but consumers who are looking for more affordability on a credit card balance transfers may be in a financial position where they can lock in a lower rate or take advantage of an introductory rate that is more affordable than many of the national averages. Understandably, the rate that a consumer receives on their credit card will depend on their credit score and history, so an interest rate that a consumer may see advertised may not be necessarily what they must settle for.
Yet, when it comes to balance transfer opportunities at a low interest rate, there are some lenders who are offering rates as low as 0% APR for a set period of time. Obviously, consumers may benefit from these balance transfer credit cards to consolidate debt if they can consolidate various credit card debts onto one of these low interest balance transfer cards, and obviously erase what they owe before their interest rate increases. Ideally, consumers who have consolidated credit card debt onto a balance transfer credit card have been able to budget in such a way that allows them to rid themselves of these debts which were previously associated with multiple interest rates on a card that has offered him little or no interest, which would obviously save a great deal in the overall payment that must be met on these various debt obligations.
However, consumers need to be wary of these credit cards as not all offers may be in their best interest or fees and variable rates could cause trouble down the road even if the cardholder is able to erase the debts that were transferred to a particular card. Simply put, advisers have prompted cardholders to research not only balance transfer card opportunities, if they are in need of this form of debt consolidation, but to also look at what kind of card they will have once the introductory interest rate expires and annual fees or variable interest rates begin to appear.
Proper management of any line of credit can lead to more affordability and benefits within the life of the consumer, but again, affordable balance transfer credit cards are being offered at a low introductory rate, and even low regular APR percentages for some, but careful research needs to go into what card a consumer chooses so that financial strains do not rise after their introductory period has expired.