As we are beginning the third week of September many cardholders and consumers who are looking for credit card options have seen some reports that credit card averages may have increased slightly, and there are even some resources that are reporting that balance transfer credit cards have risen, despite the fact that others have these cards at the same rate we have seen over the past few weeks. However, when it comes to calculating the costs, comparing balance transfer credit card opportunities, interest rates and requirements of cardholders who use this card for debt consolidation will be vital so that consumers will be able to take advantage of this card if it’s right for their situation.
It’s no secret that many credit card lenders have been drawing consumers back into the credit card market with these balance transfer options simply because they have allowed consumers to consolidate debt onto this card with either a small or no interest rate for a set period of time, and in some cases this is substantial amount of time to repay a consumer’s debt that is consolidated on this card without having to meet interest rate costs can be helpful. However, some consumers are skeptical when it comes to certain credit cards, and many have questioned whether balance transfer cards can help save on the overall payments they make, when interest is factored in or, in the case of some of these cards, nonexistent.
Currently, average rates being reported on balance transfer credit cards vary from anywhere between 12% to 16%, but what consumers are usually drawn in by is the promise of no interest rate for a period of time during which the consumer can consolidate debts on this card and pay them off. However, what consumers need to understand is that introductory interest rates are not necessarily set in stone as there may be some conditions that must be met before this particular rate stays in place.
Reading the fine print on these card offers is always going to benefit the consumer, as there also may be fees charged when a consumer transfers balances, and in some cases if an individual consolidates a substantial sum through the use of this balance transfer credit card the fees they pay may be comparable to the overall interest rate costs they may have paid had they not used the balance transfer card at all. While there are some positive reports coming in that certain consumers are whittling away at credit card debt and seeing lower mortgage debts as well, anyone who feels that a balance transfer credit card may be right for their situation must make sure they fully understand any costs that can come with using this type of debt relief tool.
Not all consumers have benefited from consolidations, nor is it always a good idea to open up a new line of credit simply for the purposes of debt relief, but again, this is a consumer’s personal decision as to whether the use this particular card to repay their debts through the use of a consolidation opportunity will be right for them. Again though, despite the fact that low rates may be offered on these cards and introductory periods of 0% interest could also come for new borrowers, fees and requirements to keep these introductory rates or when consolidating must also be factored into the equation when a consumer is deciding whether one of these cards will be helpful.