Consumers have been drawn to balance transfer credit cards over the past months as these particular types of credit card opportunities have not only allowed some consumers access to credit, which will obviously be used for a variety of purposes, but whenever a balance transfer option is offered on a particular card, some consumers are finding that the interest rates for a short period of time will allow them to consolidate multiple debts and pay off what they owe. While this topic has continually been covered over the past weeks, there are still some aspects of balance transfer cards that consumers may not be aware of, and when it comes to comparing rates on these balance transfer cards, some consumers are still unaware of just exactly what options are available.
Currently, many of the average rates on balance transfer cards for June 21 stand at around 12% to 16%, but again these are only averages. Consumers who are in the market strictly for a balance transfer card may fail to realize that there are a wide variety of card types that may be available, with each one potentially offering a balance transfer opportunity for the consumer who may have multiple debts which could be consolidated. However, what the problem we have seen over the past weeks centers around is that consumers are simply looking for cards that offer a balance transfer opportunity, without weighing the pros and cons of whether a balance transfer consolidation is right for them.
Numerous types of credit cards are available, as there are everything from student cards to bad credit credit cards, and of course these balance transfer cards, so it will heavily depend on what the consumer plans to use their card for as to what type they should research. Yet, some consumers who may only be looking for a balance transfer credit card solely for debt consolidation could find themselves in a difficult financial position later as opening a line of credit only for the purposes of consolidating debt is usually not in the best interest of a consumer.
Consumers who are facing multiple debts that may be problematic often think that debt consolidation is the answer to their questions, and since some feel that the process of acquiring a debt consolidation loan can be cumbersome, many see these balance transfer credit cards as a more streamlined way which they can acquire debt relief through consolidation. It is true that some consumers have turned to these balance transfer cards over the past weeks as a way to consolidate debt and they have been able to pay off what they owe during a period where low interest or no interest was associated with the balance transfer on their card, but consumers have in some cases had to pay fees or meet certain requirements before this low introductory rate remains in place.
While keeping up to date on what rates are averaging on certain cards can be helpful and is necessary during the research process for anyone who may not have a line of credit but happens to be in the market for a credit card for the purposes of building credit or other uses, many advisers have prompted consumers to avoid opening up another line of credit particularly for the purposes of debt consolidation, especially if alternatives to debt relief like budgeting or outside assistance from a credit counseling agency have not been explored first.