These days, even as lenders continue to expand their borrowing efforts to consumers with all types of credit ratings, the interest rates borrowers can expect to pay on those cards can also be quite elevated.
Credit card issuers are once again slackening qualification requirements for opening new accounts these days, but at the same time are insulating themselves from risk by keeping interest rates on those balances elevated, according to a report from the South Florida Sun Sentinel. In most cases, interest rates for those with the best credit ratings are still coming in at around 13 percent, while those whose scores barely qualify them for a card can expect to pay closer to 20 percent.
At the same time, lenders are also increasing the rewards benefits and other perks associated with their cards — which higher interest rates help to pay for — as a means of incentivizing greater use, the report said.
These elevated interest rates create the necessity for consumers to check their credit reports prior to applying for any new accounts. Doing so will help to ensure their borrowing histories are free of errant or unfair entries that might have an adverse effect on their credit scores.