Tips to Avoid Bad Credit Cards

By deSita Anwarhee

Bad Credit Cards. Experts say a lot of consumers with damaged and no credit are paying a lot more than they have to for a credit card. Imagine a credit card with fees as high the credit line, an eye-popping annual percentage rate, no grace period and stiff late payment penalties. This is why you had better make certain that you’re getting the best credit card and not one that will get you in debt. Below are some matters that should be considered before you accepting a new credit card:

• Bad Credit Card deals will charge you a high cost for some fees like a high annual percentage rate, high one time program fee, high set up fee, and even a monthly participation fee.
• Bad Credit Card deal is when you put your own money into a bank account and draw from it, and the credit card company tacks on annual fees, rate of interest and processing fees. There are so many people that want a credit card that they will actually agree to these terms.
• Low credit limits. If you exceed your limit, you’ll probably get an immediate rate boost as your card issuer charges you with its penalty interest rate. In addition, it would hurt your credit health since the ratio of your card balance to your limit determines 30 percent of your score.
• Internet or phone-payment fees. If you have to make a last-minute payment, many credit card companies will charge you $15 or more, basically charging you a fee for the privilege of paying.
• The cards that claim they have a low 9.9% rates. People get blinded about the  low interest rate and don’t bother to read the fine print. They miss out on the fact that the  credit card has account setup fees and program fees and annual fees and service fees, etc., and before they’ve charged one thing, the credit card has already accrued a $200.00 balance from the credit card company. Be sure you read the fine print on any credit card before apply for it.
• The cards that give you stuff for spending money. Keep a balance on your card  and they’ll enter your name in a monthly drawing. These cards can fool you into believing  that it’s okay to use the card as you’ll be able to win a prize when you use it. Actually it can be one of the most dangerous cards to use in terms of over extending yourself, because you can easily justify using it.

In conclusion, do your research. So many people get a credit card before they find the cons and pros of the card. In times like this, it’s all important to pick the correct one. If you are new in buying a credit card, don’t act so hastily, even if they give you a free stuff for signing up. It could just lead you to more debt.

Chek out our other credit and loans guide on Direct Loan Servicing.

Tags: bad credit cards, bad credit credit cards, cards for bad credit, credit cards for bad credit

This entry was posted on Sunday, February 8th, 2009 at 9:18 am and is filed under Credit Cards. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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