It used to be that getting a bad credit credit card meant
paying ridiculous interest rates and high annual fees.
Nowadays, that's just not the case. There are many bad
credit credit cards on the market that have low interest
rates and reasonable fees. It's just a matter of knowing
what to look for and what you should expect.
1. Understand What Type of Bad Credit Credit Card You
Qualify For
Before applying for a bad credit credit card, you need to
understand the differences between them. There are two main
types of bad credit credit cards on the market -- secured
and unsecured. A secured bad credit credit card will have
more lenient credit qualifications than an unsecured one.
Most unsecured bad credit credit cards require that you
don't have any late payments or delinquent accounts for a
period of six months before you can qualify. If your credit
problems have been more recent, you're going to want to
look into secured cards rather than the unsecured variety.
2. Review The Interest Rates
When it comes to carrying a bad credit credit card, you
should expect to pay a higher interest rate than you would
if you had good credit. After all, the lender is assuming a
bit of a risk by extending credit to you. They are
compensated for this in the form of a higher interest rate.
That being said, it is important to understand that even if
you do have bad credit, a bad credit credit card should not
hang you out to dry in terms of the interest rate charged.
Some bad credit credit cards charge as little as 9.99
percent while others try to charge interest in excess of 20
percent.
I personally would never advise paying more than 16 percent
interest on a bad credit credit card -- preferably less.
Even if your credit is horrible, a secured card is
guaranteed by your security deposit. Because of this, your
interest rate should be lower than it would had you
qualified for an unsecured credit card.
3. Watch Those Fees
Some of the companies that offer a bad credit credit card
will extend an unsecured line of credit with a reasonable
interest rate, but will charge ridiculously high fees.
Because of this, it's very important to understand all of
the costs associated with any bad credit credit card.
Some credit card companies will charge application fees and
processing fees in addition to an annual fee and a monthly
maintenance fee. This is all on top of the interest you
will pay if you don't pay your balances off in full each
month.
When looking for a bad credit credit card, never apply for
one that charges an application fee. Processing fees are
acceptable, as long as they are kept under $70 and are not
charged in addition to an annual fee. If an annual fee is
charged, make sure monthly maintenance fees are not.
4. Read The Fine Print
While it's not common, every once in a while you will run
into a bad credit credit card that doesn't have the best
interests of the consumer in mind. Make sure you read the
fine print and the entire terms and conditions of any
credit card you apply for. While it can be time consuming,
it's definitely worth it if you want to avoid any
unpleasant surprises.
5. Use It Like a Loaded Weapon
It sounds drastic, I know. However, if you're in need of a
bad credit credit card, then something bad happened to your
credit that got you here in the first place. If you want to
avoid future mistakes, you need to be very careful with how
you use the card.
While looking for the right bad credit credit card can be
time consuming and even frustrating to a degree, knowing
exactly what you should expect and the key things to look
for will make it much easier. Keep the above tips in mind
and finding the right bad credit credit card can be much
easier than you may think.
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For more tips on bad credit credit cards, saving money and
avoiding getting taken, check out CreditCardTipsEtc.com, a
website that specializes in providing credit card tips,
advice and resources.
http://www.creditcardtipsetc.com/bad_credit_credit_cards
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