Some banks are beginning to offer more credit card options as we enter into the middle of 2011, even though there were arguments that many consumers, no matter their credit position, were having trouble finding affordable lines of credit available or even access to credit in general. Yet, consumers in a good financial position who may qualify have often explored low interest credit card opportunities by looking at average rates that have been reported on over the past weeks for unsecured cards that can offer benefits to cardholders who may have a variety of uses in mind for these particular credit card opportunities.
Currently, low interest credit cards are averaging around 10% in terms of their interest rate, but there are questions about whether these cards are beneficial for consumers who are looking for a new card, but whether they will be helpful will heavily depend on the personal situation of someone seeking these cards. As an example, some cards that come with these low interest rates also bring about balance transfer opportunities, and this has been an incredibly popular topic as of late, in terms of consumers who feel that if they can lock in one of these balance transfer opportunities on either a low interest credit card or a card that simply offers a balance transfer option, they can erase their debt at a much lower cost.
However, consumers who may be considering one of these low interest cards for the purposes of debt consolidation have a wide variety of options that are available to them outside of low interest credit cards or even balance transfers specific credit cards that may be offering low introductory rates or, in the case of these low interest cards, a low interest rate overall. Turning to a credit card for the purposes of debt relief has been helpful for some, but credit inquiries, the temptation to use multiple credit cards, or introductory offers that may lure consumers and but suddenly increase after a set period of time are all factors that have led to financial distress in the past and, for those looking for a new credit card here at the end of May, it could lead to damage down the road.
Some consumers have worked hard to improve their credit standing and, as a result, may find that they are on a stable financial ground so that they may benefit from these low interest cards, but comparing credit card offers is also vital if the consumer has reached the point where they feel one of these low interest credit cards is not only available but could be helpful for their personal use. While, again, these interest rates will vary and can be variable too, cardholders must also realize that certain protections offered from the CARD Act will not prevent them from getting in over their head in terms of debt, so comparing these cards will not only be vital, but proper use of a low interest card must be implemented in the life of a consumer as well, as low interest on a credit card does not mean that costs could not potentially get out of hand.