What impact does the lower interest rate have on the overall cost of credit for cardholders?

The lower interest rate on a credit card can have a significant impact on the overall cost of credit for cardholders. A lower interest rate means that less interest accrues on the balance, which can save cardholders money over time. For example, if a cardholder carries a balance of $5,000 on a credit card with a 20% APR, they would pay $1,000 in interest charges over the course of a year. However, if they were able to transfer that balance to a lower interest rate credit card with a 10% APR, they would pay only $500 in interest charges over the same period. This represents a significant savings of $500.

It's important to note that while a lower interest rate can help reduce the overall cost of credit, it is not the only factor to consider when evaluating credit card offers. Other factors such as rewards programs, fees, and introductory offers should also be taken into account when choosing a credit card.