Balance transfer credit card options are one of the many types of new credit card offers that consumers are seeing as reports indicate many financial institutions are looking to get back into the credit card game as lending practices by many big banks are beginning to loosen. Yet, balance transfer credit cards in particular can be used by consumers to not only erase consumer debt, but they can be a conduit through which bad credit borrowers begin to repair their credit score as well.
When it comes to balance transfer credit cards, an article on SmartMoney.com stated that, in October of 2010, banks, “mailed out 40 million balance transfer offers to existing cardholders,” and there are some indications that even subprime borrowers may have more options to acquire a credit card, which in the recent months would have simply been impossible in many instances. There are those who say that getting an unsecured credit card has never been that difficult for potential borrowers, but when it comes to affordability, these cards that may be offered for either debt consolidation or bad credit repair may have not been as cheap in the past, yet could offer more affordability at the present time.
Consumers who choose a balance transfer credit card may be offered a low introductory rate which can be used to consolidate debt and, if a consumer plans properly, they can erase these debts in a timely manner and avoid paying interest. Obviously, a consumer who can take multiple debt obligations and consolidate them on a balance transfer card that may have a low introductory rate or 0% interest for a set period of time may be able to save a great deal on interest charges and get out of debt at a much lower cost.
Also, consumers who may want to repair their credit score or simply build up their score may also have options as more card offers are being seen and, again, may offer chances for these consumers to erase their debt without incurring excessive costs. However, a Creditcards.com article on balance transfer cards suggest that consumers pay careful attention to balance transfer offers by looking at feedback from other cardholders who may have taken a similar offer, be sure that the introductory advertisement will apply to their personal financial situation, and if a card is being used to increase one’s credit score, avoid closing out old credit card accounts, as this can lower one’s credit utilization ratio.
While there are many consumers who can benefit from these credit card offers that can bring about debt consolidation options or methods for simply building one’s credit history and score, practicing smart financial habits and keeping a close eye on fees, terms, and changes that may be associated with one’s credit cards will be necessary to not only avoid excessive costs when repaying credit card debt but vital for simply staying out of trouble concerning one’s spending and repayment ability.