Continued Balance Transfer Cards Offering Consolidation Options But How Do Cardholders Benefit?

Continual offers for balance transfer credit card options are helping consumers when it comes to consolidating debts and, at times, at a low interest rate but as we have seen here in the month of October, and likely will see into November in the coming weeks, there are some cardholders who may benefit from these options, while others may stand to lose if caution is not taken in what a particular balance transfer credit card offers. While rates on these cards have, according to some sources, risen very slightly, what most consumers are drawn into is the introductory rate and period during which they can pay off their consolidated balance, as some consumers who have been looking at personal consolidation loans have found that the consolidation options on these balance transfer cards have met their needs in a more efficient way.

Yet, here as we close out in October we have seen rates that range from 12% to 16% or higher on these balance transfer credit cards, and there are also some reports that have arisen this month that some lenders are not only making certain types of cards more available but they may be lowering the requirements that some borrowers have in terms of credit score, which means bad credit borrowers may have access to more opportunities. However, specifically related to these balance transfer credit cards we have seen some consumers benefit over the past weeks and months by consolidating multiple debt obligations, and paying them off in a timely manner, which again may come at a 0% introductory rate.

Avoiding these additional costs has been a big draw for many consumers as, obviously, there are some consumers who may be paying a great deal on interest when it comes to keeping their debt separate, but consolidating with a balance transfer credit card is also one area where consumers must be cautious and look at all the aspects of specific cards that may be available and also weigh the pros and cons as to how it will impact their financial position. As an example, some consumers have consolidated with a balance transfer credit card, have had to meet certain requirements like making more charges or paying off their debt and a certain amount of time, and even paying a high fee on their balance transfer cards, and in the end it has made the benefits that are thought to be available on these cards nonexistent for some.

Because of this, consumers who are currently researching these balance transfer credit card options may want to not only look at what rate they will receive, and factor into the equation that the use of this card in the future will require consumers to meet interest rate costs if they carry a balance, but consumers also need to realize that paying off their debt quickly will be necessary if an introductory rate timeframe is short. Since there are also some factors such as fees that are in this equation as well, this is where consumers need to calculate if these fees will offset any savings in interest they stand to pay or whether alternative repayment strategies that will keep their debts separate rather than consolidated on these balance transfer cards will be best.