Credit Cards For People With Bad Credit - 3 Essential Facts You Can"t Ignore
If you've been searching to find credit cards for bad credit, you're already aware your selection isn't as great as someone who has good credit.
But that doesn't mean you shouldn't be prudent and examine your options carefully before selecting a card.
Not all bad credit credit cards are the same! The terms and interest charges can vary greatly so be sure you do your homework before applying.
It can literally save you hundreds of dollars each year.
In order to evaluate the features of each credit card, you'll need to see their disclosure of terms and conditions form.
If you're doing this online, click forward until you find it and review it carefully.
Carefully compare the disclosure of each card and study the following: 1) Annual Fees Like transaction fees, this is another profit center for banks.
Since banks receive no income from cardholders who pay off their monthly balances, annual fees help them survive.
Fees vary greatly among credit cards so shop carefully.
If you pay off your balance monthly, a card with no annual fee would be your best choice.
If you regularly carry a balance, find one with a reasonable annual fee and low interest rate.
2) Outrageous Cash Advance Fees Almost all cards, especially credit cards for bad credit, charge outrageous interest rates for cash advances.
This is the banks way of converting your card balance to a high interest rate loan.
Beware of this scam and avoid using cash advances if at all possible.
Balance transfer fees, setup fees, returned item fees, and telephone fees also fall into the category of outrageous fees.
3) Killer Late Payment / Over The Limit Fees With bad credit credit cards , one commandment you should never violate would be to make a late payment.
At all costs, avoid making any late payments! The late payment penalty (up to $39) combined with an astronomical increase in interest rate could spell financial disaster for you, especially if you maintain an outstanding balance.
So many consumers fall behind and never recover financially because of the "domino" effect these late fees have.
If your account balance is near the credit limit, one late payment fee of $39 could cause your account to exceed the credit limit thereby incurring an over the limit fee.
Plus the bank will penalize you with a hefty interest hike.
Some banks can raise the interest to as a high as 39 percent ! This one mistake will set you back financially because it'll take more money to pay off your account, especially if you're making only the minimum payment.
It is the goal of this article to provide some valuable insights into helping you select the best bad credit credit cards for your financial needs.
If you have poor credit, your choices may be limited to applying only to credit cards bad credit.
But that doesn't mean you can't shop wisely for your next credit card.
But that doesn't mean you shouldn't be prudent and examine your options carefully before selecting a card.
Not all bad credit credit cards are the same! The terms and interest charges can vary greatly so be sure you do your homework before applying.
It can literally save you hundreds of dollars each year.
In order to evaluate the features of each credit card, you'll need to see their disclosure of terms and conditions form.
If you're doing this online, click forward until you find it and review it carefully.
Carefully compare the disclosure of each card and study the following: 1) Annual Fees Like transaction fees, this is another profit center for banks.
Since banks receive no income from cardholders who pay off their monthly balances, annual fees help them survive.
Fees vary greatly among credit cards so shop carefully.
If you pay off your balance monthly, a card with no annual fee would be your best choice.
If you regularly carry a balance, find one with a reasonable annual fee and low interest rate.
2) Outrageous Cash Advance Fees Almost all cards, especially credit cards for bad credit, charge outrageous interest rates for cash advances.
This is the banks way of converting your card balance to a high interest rate loan.
Beware of this scam and avoid using cash advances if at all possible.
Balance transfer fees, setup fees, returned item fees, and telephone fees also fall into the category of outrageous fees.
3) Killer Late Payment / Over The Limit Fees With bad credit credit cards , one commandment you should never violate would be to make a late payment.
At all costs, avoid making any late payments! The late payment penalty (up to $39) combined with an astronomical increase in interest rate could spell financial disaster for you, especially if you maintain an outstanding balance.
So many consumers fall behind and never recover financially because of the "domino" effect these late fees have.
If your account balance is near the credit limit, one late payment fee of $39 could cause your account to exceed the credit limit thereby incurring an over the limit fee.
Plus the bank will penalize you with a hefty interest hike.
Some banks can raise the interest to as a high as 39 percent ! This one mistake will set you back financially because it'll take more money to pay off your account, especially if you're making only the minimum payment.
It is the goal of this article to provide some valuable insights into helping you select the best bad credit credit cards for your financial needs.
If you have poor credit, your choices may be limited to applying only to credit cards bad credit.
But that doesn't mean you can't shop wisely for your next credit card.