Bad Credit Card offers

By deSita Anwarhee

Bad Credit Card. Most people receive more credit card offers than they can remember. These offers come in  brightly-printed text with extraordinary offers of low percentage rates. Whether it’s being pre- approved for $10,000, or the promise of earning free airline tickets, there’s always something that  lures us in.

Before applying for these offers, it’s important to know what they actually mean. Since usually  the offers are not as beneficial to the consumer as they appear and can be considered as bad credit card offers.

Introductory Offers Limitations

The main problem that people don’t notice about these deals is that they seem to be all well and  good. These offers that is printed in large type are typically only introductory offers that valid for a  set amount of time.

Many low introductory APRs are only for the amount that is transferred from other credit cards. It  is important to know if the lower interest rate is for any purchase that is made during the  introductory period or only for transferred balances.

Oftentimes 0% APR offered is only valid for 12 or 15 months. After that, the percentage rate goes  back to a normal rate that is usually based on a person’s credit rating. Cash advances also  usually do not get the same low introductory APR as purchases. If a cash advance is taken during  the introductory period, it is commonly subject to a higher percentage rate.

Terms and Conditions

The bottom line on introductory offers for credit cards is to understand what exactly the offer  entails. To get the best deal, you should know what the main terms mean.

APR (Annual Percentage Rate): Yearly percentage rate charged when a balance is held on a  credit card. This rate is applied each month that you carry a balance (the lower APR, the better).

Grace Period: A period of time during which you’re allowed to pay your credit card bill without  being charged for a late fee. This period is usually 10-28 days.

Annual Fee: Yearly fee associated with having the credit card. Unless you are getting rewards or  miles, or something extra, you may want to look for a card without an annual fee.

Default on Payment: Missing a payment, that also usually means that the introductory period  comes to an immediate end. The percentage rate for the total outstanding balance goes to a  default interest rate that is usually about 20%.

It is also important to note that these limitations on introductory rates do not necessarily make  them as a bad credit card offers. If a person is trying to pay off high interest credit card debt that  can be done within the time of the introductory APR, then it can be a very good thing.

Chek out our other credit card guide on Bad Credit Cards.

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.