One of the most important steps consumers with bad credit history can take to improve their credit score is to pay off their credit card debt. New developments in the credit card industry promise to make this easier, according to The Associated Press.
The recent expansion of credit has been primarily targeted towards consumers with good credit, but bad credit borrowers may find that they can also benefit from these industry developments. To lure customers, credit card companies are making it easier to transfer balances by offering 0 percent APR periods of up to one year. During the worst parts of the recession, these periods were typically no longer than six months, according to the news source.
Balance transfer fees have contracted from 5 percent, on average, to about 3 percent, according to LowCards.com, potentially making it less costly for bad credit consumers to transfer their debt to a card with a lower interest rate.
Consumers with bad credit history may want to shop around for credit card offers that allow them to transfer their balance easily and be able to pay it off more quickly.