Consolidating Bad Credit Debt Through Credit Card Balance Transfers–Can Consumers Get An Affordable Interest Rate?

Consolidating debt for bad credit borrowers can be accomplished through either loans or balance transfers, but there are often drawbacks to this form of debt relief when a bad credit score is in place due to the fact that it may be difficult for certain individuals to find an affordable rate on options like credit cards, which are reportedly becoming more available to subprime borrowers. The option to transfer balances from various debts onto a credit card is one of the more popular means that some consumers use as introductory rates on these cards can be quite low and offer the option to erase multiple debts for little or no interest.

Generally speaking, credit card websites like CreditCards.com and Bankrate.com have different averages when it comes to these balance transfer cards as CreditCards.com reports that the average APR on balance transfer cards is around 12.78% while Bankrate.com puts his average closer to 16.10%, at the present time. However, when it comes to these average rates on balance transfer cards that may be helpful for consolidating multiple consumer debts, consumers must understand that no matter what an average or range on a particular card may be, their personal situation will factor heavily into the rate they receive. Many consumers have made the mistake of signing up for a balance transfer credit card due to the fact that it can come with little or no introductory rate, which again opens the door for affordable debt consolidation, but fail to look at the long-term rate that may arise after this introductory period has ended.

However, when you factor in a bad credit score to this equation, some consumers may find it incredibly difficult to get a card that is either affordable or offers a balance transfer opportunity. Yet, there are some credit cards offered for subprime borrowers that do offer a balance transfer option and some consumers who simply have less than perfect credit could find that there are balance transfer card options available for their situation that will allow them to consolidate bad credit debt sources.

When bad credit borrowers are looking into these opportunities to consolidate debt on a balance transfer credit card, they must not only look at options that may be available for bad credit borrowers that would bring a balance transfer opportunity, if a traditional balance transfer credit card is unavailable, but factoring in the interest rate that a card may have during an introductory period and in the long-term, as well as, how this will affect the cost of repaying on consolidated debt will all be necessary before a consumer enters into a credit card agreement.

There are, again, some bad credit credit card options for borrowers that do allow for a balance transfer to take place and even these cards may offer a low introductory rate, if again a traditional balance transfer card is unavailable, but consumers need to make sure that they are careful when looking at these consolidation options as a bad credit score that may be the result of poor financial practices could only be made worse if a credit card consolidation opportunity is used and a consumer does not pay off these debts in a reasonable amount of time.

Simply put, some consumers may find that even with less than perfect credit, they can get an affordable rate on a balance transfer credit card that will allow them to consolidate their debt obligations, but simply signing up for a card because it has a low introductory rate can be problematic and should be avoided without proper research beforehand. Typically, consumers who have benefited from a bad credit debt consolidation on a balance transfer credit card are those who were able to consolidate these bad credit debts which may have come with a high interest rate and pay off the debt on their credit cards while a low introductory period was still in place.

Also, these consumers chose a card where the rate would not increase dramatically after this intro interest rate had expired, as this will help in the long run. If affordability in the long-term on a balance transfer credit card for bad credit borrowers is not available, a consumer cannot pay off a consolidated balance in a timely manner, or fees associated with balance transfers and strict requirements of a credit card’s use are in place, a consumer may be better off simply continuing to look at other cards or researching alternative bad credit debt relief options.