Low interest consumer credit cards are obviously one of the more sought after lines of credit that consumers seek when choosing a new card or when looking for opportunities to find a more affordable line of credit if current credit cards have seen interest rates increase over the past months. Reportedly, credit card rates have risen over the past year, which many feel is due in part to the CARD Act that has prevented credit card lenders from suddenly increasing interest rates and has put caps on fees that may be charged in certain cases.
Yet, an article from the Better Business Bureau made mention that, “The average credit rate rose to 13.44 percent last year. That’s up from 12.75 percent at the beginning of the recession, according to the Federal Reserve.” Obviously, credit card interest rates will vary depending on the type of card, the lender, and the financial position of the borrower in many cases, however, there are some consumers who are concerned that averages on credit cards have begun to creep up and, without proper credit card use, higher interest rates will obviously cause more difficulty for consumers who may keep a balance on certain cards.
While Bankrate.com reports that the average rate on a low interest credit card is around 10.87%, consumers have often been advised to heavily research any offers that may be made for an affordable credit card with a low interest rate, as there are some new practices being implemented by credit card companies that may cause problems for cardholders who are acquiring a new credit card. As an example, many credit card lenders are beginning to offer low interest rates or a period of 0% interest on new cards, simply as a way to draw in new cardholders who, until recently, may have either been in a financial position where they could not afford or qualify for a card, but as many banks feel consumers are finding more stability in their financial life, these card offers are becoming more available.
Individuals who may be able to take advantage of credit cards that come with a low interest rate, either for an introductory period or that simply may hold a low APR for the cardholder, need to be sure that there are no hidden fees or interest rate increases that may come down the road, as again, cardholders who have switched to new credit card offers that come with a low introductory rate could be in a difficult financial position if they are carrying a balance on these cards when the rate increases.
However, there are advisers who simply argued that if a consumer will practice responsible habits with their credit card use and repayments there are ways to avoid difficulties associated with interest rates on many cards. Obviously, consumers will want to avoid frequent use of a credit card with an excessively high interest rate if they are to carry a balance, but simply spending within one’s means on credit and promptly repaying these charges will keep any costs associated with an interest rate at bay, no matter whether the card comes with a low rate or average interest rate for the cardholder.