Some consumers may have been concerned over reports that average credit card rate increases were recently seen and, as a result, there are some who wonder whether they will be able to get an affordable rate on popular credit cards that offer a balance transfer opportunities, but there are some aspects of these rate increases that need to be understood by consumers who may be looking at balance transfer credit card options for the purposes of consolidating debt. These average rate increases that were reported are not necessarily going to always be seen across the board, as there are different categories of credit cards which may see rate increases and, as a result, boost the overall average on credit cards that is being seen as well.
Yet, when it comes to these balance transfer credit cards, consumers have seen relatively little change as many of these cards still average between 12% and 16%, but this of course will vary depending on a consumer’s financial position and their ability to qualify for the best rates on these cards. However, some consumers may be looking at cards that are categorized outside of this balance transfer field but also offer the opportunity to transfer balances from other debts. As an example, cards that range from secured, bad credit credit cards to business credit cards may offer a balance transfer option but what many consumers have been looking for is the opportunity to consolidate debt on one of these cards at an affordable introductory rate so that they can pay off what they owe.
This has been one popular credit card debt relief or general debt relief practice that consumers have used as some cards that are advertised as balance transfer cards have allowed consumers to group all of their debt onto one of these cards which may then be paid off without having to meet interest rate costs, if consumers are in the position to meet any requirements on their balance transfer credit card that may be in place, handle the fees that come with transferring a balance, and pay off their consolidated debt in a timely manner.
What consumers are often advised about regarding these balance transfer cards or general rate increases that may be seen is that it can cause financial problems if a consumer does not budget in such a way that allows them to meet their payment obligations. Obviously, higher interest rates on credit cards could lead to higher overall costs and could even cause a minimum monthly payment on a card holders get to be too costly, but when it comes to these balance transfer cards specifically, consumers need to watch out for fees that may come from consolidating their debt as some cardholders may find that the percentage they must pay on a balance transfer could offset any savings they will see from paying off their debt with little or no interest.
However, it’s because of the fact that a consumer’s individual interest rate will differ than average rates, in many cases, that advisers also want cardholders to be very careful when they are looking at credit card options as they need to make sure that they will get an affordable rate, the credit card they select will meet their specific needs, and also consumers need to be sure they are in a financial position to not only handle the use of their credit card responsibly but they will also be able to pay off their debt as well.