As we enter the final week of September consumers who are looking for balance transfer credit card opportunities may have found that when comparing rates and calculating the overall costs that may come with the use of these cards, there has been little change over the past few weeks when it comes to interest rate charges, but this is one area where consumers may research, find an affordable rate, and apply for a card without looking at other aspects of these credit card opportunities that could bring additional costs as well. Understandably, many consumers have been carried away by the idea of consolidating areas debts onto about transfer credit card and paying off these cards at a low introductory rate or, in some cases, 0% interest, but there are some aspects of this savings opportunity that have been lost due to factors like fees charged by credit card lenders.
When the lenders of these unsecured credit cards began to advertise introductory rates that were incredibly low or nonexistent for new cardholders, this obviously led many consumers over the past weeks to consider whether this type of card would be helpful, even if they may have had other credit cards or various outstanding debts. Again, some consumers felt that they would be able to pay off a consolidated balance before the introductory rate expires, and in some cases this did lead to success for consumers as they paid off this consolidated balance on the card and save on interest rate charges as well.
Currently, these balance transfer credit card interest rates are being advertised at around 12% to 16%, but this could vary depending on the borrower. Yet consumers who are comparing these cards must make sure that they look into certain aspects like requirements that must be adhered to before an introductory rate will remain in place and how much of a fee a consumer will pay when balance transfers take place. It has been mentioned repeatedly that some consumers overlook this aspect of a balance transfer credit card and don’t realize that a credit card lender may charge a fee on the total amount of debt transferred that could be comparable or even more than the amount of interest a consumer would have paid if they had simply left their debts separate.
Also, there are some cards that may require consumers to make a certain amount of charges during the month so that they can keep the introductory rate they received, and this can be counterproductive for someone who is looking to simply use a balance transfer card as a way to pay down what they owe on multiple debts. Furthermore, consumers not only need to look at how much they may pay in fees, in terms of what rate they may be charged on the total amount they transfer, but the ability of the consumer to pay off these debts during the introductory period must also be factored into the equation.
Ultimately, the choice of whether to use a balance transfer credit card will fall to the consumer, but as we continue to see consumers looking into balance transfer credit cards or simply looking to access lines of credit for various reasons, it makes it all the more important for men and women to question why they are looking for a particular line of credit and how much these lines of credit may cost in the long run.