Credit has been a hot topic over the past months as there are still complaints that some banks are refusing to lend in a variety of capacities, while others are making options like credit cards more widely available to a various spectrum of consumers from those who may have good credit to subprime borrowers seeking a credit card option. However, when it comes to these credit card offers and the various rates that consumers are dealing with, as some are in the market at the present time generally for the purposes of bad credit repair, there are advisors questioning why certain consumers are looking for a new credit card offer for the purposes of repairing their credit score when they may already have a card that is active.
Here in the very early parts of June many credit card rates have remained quite stable despite some ups and downs on certain lines of credit, as national averages on credit cards are being reported to be around 13% or 14%, while rates on specific cards like popular balance transfer cards are holding at average rates ranging from 12% to 16%. Understandably, the rate a cardholder receives will vary depending on the lender, the type of card, and their credit score, but those who are looking for cards that may offer them a deal or may simply, once again, need options for bad credit repair, opening a new credit card account could be a step in the wrong direction.
Arguments have been made when consumers who are in the bad credit repair process pay off debts that initially caused their problems, many will close out their credit card account and search for a more affordable option. It goes without saying that a low credit score will lead to an increase in interest rates that a consumer sees on active lines of credit, but when it comes to a credit history, having a longer history associated with a particular card can be more advantageous than a consumer buying and repaying charges on a new card that they may have recently acquired.
Essentially, consumers have made the misstep of closing out a credit card account and applying for new cards, both of which can have negative effects on a consumer’s credit score as closing a credit card account will not only impact length of a consumer’s credit history, but this act of merely closing their account and credit inquiries into new credit cards could cause a score to drop as well. Simply put, there are numerous credit card offers currently on the market that can be quite attractive for a variety of men and women who are looking for something different from their credit card, but consumers must also remember that a card with a long history may be more beneficial for the bad credit repair process and if properly used, even a card that may have a high credit score can be helpful as long as a consumer pays off the total charges they make each month and doesn’t keep a balance on a high interest card during this process.