Bad Credit Credit Cards: Choosing The Right One

By deSita Anwarhee

Bad Credit Credit Cards. For the millions of consumers with bad credit and no credit, getting approved for a major credit card acquires a lot of effort. If you have bad credit, your credit card choices are limited. Aside from a lot of credit card companies denying your application, someone with bad credit commonly receive very low credit limits and additional fees.

When applying for a credit card, picking out the right card is all important. Before applying for a major credit card, carefully consider your credit rating. Make sure you do not have too many credit lines open or otherwise hurt your credit. Your credit score will lower with every credit card request.  To eliminate too many inquires, reduce your selections down to two or three companies that specialize in bad credit, that are potential to approve your application. This is a great first step in taking your credit score improving to an acceptable level.

If your credit rating is bad, it helps to research bad credit credit cards. Many companies issue unsecured and secured credit cards to people with bad credit. Bad credit credit cards are designated to make it easier for some to obtain credit. However, some companies use this as the perfect opportunity to take advantage of people like you. This is the reason you need to compare several card issuers and their offers.  Commonly you will not be able to obtain a low interest rate credit card at first but some are still better than others when it comes to a bad credit credit card.

Before applying for a bad credit credit card, read the fine print for information relating to user fees.  If you’re approved for an unsecured card, you may receive an initial low credit limit. However, as you maintain regular payments, the creditor may gradually increase the spending limit.

With a secured credit card, applicants likely need to open a savings account and deposit at least $200 with the lender. In the event that you decide to stop making payments, this account serves as collateral.  Your credit limit will be normally in the $250.00-$300.00 range but that is enough to start repairing your credit score. In addition to the deposit most will have start-up fees, an annual fee and maybe a monthly service fee.  Many companies will charge these fees to your credit card so you already have a balance before you actually receive the card.

You will probably not be able to do away with all the extra fees. However, by carefully researching different online credit card companies, you should be able to find the lowest interest rate (APR) and least amount of fees.

Chek out our other credit issue 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.