Balance transfer credit card options have been in the news as of late as there are many lenders offering low rates on new credit card balance transfer offers, which has brought options for consumers to consolidate debt and find debt relief in some cases. However, there are those who feel that consumers must take caution when considering a balance transfer credit card. Obviously, indications that more lines of credit may be opening for consumers through either balance transfer cards or other forms of credit is beneficial in that it points to the fact that financial institutions may view consumers to be in a better position in terms of handling and repaying credit. While lines of credit, like small business loans, have been greatly needed by many companies, access to affordable credit is also something being sought out by consumers who saw their credit score take a hit during the recession and may need a card for credit repair as well.
Also, some consumers may have acquired a great deal of debt during difficult financial times as many have relied on their credit cards to stay afloat while either unemployment or underemployment was an issue in their lives. However, many of these new balance transfer credit card opportunities are allowing consumers to essentially consolidate credit card debts from various sources or other personal debts onto a card that offers either a low rate or 0% interest for an introductory period.
It goes without saying that consumers who can consolidate and begin repaying debt at no interest can greatly benefit when it comes to the overall costs they must meet, as some consumers have been able to erase their debt after consolidating with a balance transfer credit card at no additional cost from interest. The benefits of doing this are evident, but there are some consumers who may need to look more closely at balance transfer credit card offers and heavily research a particular card they may feel to be appealing for their situation.
Consumers may be required to either make a minimum number of purchases on a new card for their rate to remain low or after an introductory period has expired, the interest rate on a new card could potentially skyrocket, which if a consumer already has a balance on this card after consolidating, could create problems in terms of expenses related to interest. Also, some cards may charge a high fee on balance transfers, which could lead to a balance transfer option becoming less helpful and cost-efficient in certain cases.
Reading the fine print on these new offers will obviously guard consumers against these practices that may be in place on some cards, but also, consumers who may be unable to pay off a credit card balance transfer before a higher rate kicks in have usually been advised to run the numbers to see whether it will be in their best interest to take advantage of a credit card option that could potentially help them erase debt at a low cost.