Credit Cards Bad Credit Avoiding High Fees and Interest Rates It"s All in the Fine Print!
When someone has a history of bad credit, chances are they will pay a much higher interest rate for car loans, mortgages, etc.
When applying for credit cards bad credit will definitely make your chances of getting approved much more difficult.
So, what can you do to begin rebuilding your score? The first thing that you need to do is to get a credit card that is specifically intended for someone who has bad credit score ratings and when applying for any type of card you absolutely must read the fine print.
As I have stated in previous articles, this is an absolute MUST! While there may not be a lot of these types of cards available, the fact is that you can find them but while they may all seem to be the same they are not.
They will however all help you to rebuild you credit if you pay your bills on time every month because these companies will be sending your report to the credit reporting agencies and over time this will help raise your score.
You will be able to find a Visa or Master-card that you can use to make purchases with and this is something that you will want to do if you hope to save yourself some money on any future large loans such as for a mortgage or when buying a car.
Still, I cannot stress this strongly enough, if you remember nothing else that you read here, remember this...
Read the fine print!! Many of these card companies will hide the enormous fee that you will be charged in the fine print.
They will charge outrageous yearly fees as well as fees to set the card up and many will have a monthly fee already in their charges.
What this means is that by the time you get your card with a limit of $300 to $500, you will not even have an available balance left to make any purchases.
You will already have a monthly bill that you will owe just for getting that little piece of plastic.
So, I am going to share with you some details about some of these cards that are offered and as you will see, only one will actually be the type of card that you may wish to apply for.
Card Number 1.
While this card may give you a lower interest rate and is an unsecured card, in the find print there is a set up fee of $29 which may not seem too terrible however, there will also be a one time fee of $95 which means that so far you will already owe $124.
Think that's it? Nope, now you can add on another $98 annual fee and maintenance fees of $7 per month.
This brings your total to $306 which is most likely already higher than what your beginning available balance would have been leaving you with a card that is already over the limit.
While you can get this type of card and pay off the balance to begin to use it and rebuild your credit, this is not the type of card you will want unless it is the only one that you actually qualify for.
Let's look at card number 2.
Here we will already see an extremely high interest rate but it is still an unsecured card.
Still, this is already not a good offer and it gets even worse.
Set up fee? $29.
Not so terrible yet but when you add in the maintenance fees and the annual fees that are hidden in the fine print, you are going to pay over $263 just to have this card not to mention that you will be charged the annual fees every year.
Not a good card to go for.
Card Number 3.
This can be a card that is offered as both a secured or an unsecured card which will depend on how good or bad your credit history may be.
With an interest rate that is in the median rage it looks pretty good so far.
Still, there is the fine print which has that pesky one time set up fee of around $49 and an annual fee of between $79 and $99 and the best part is there are no maintenance fees.
So, this card will cost you about $148 per year and when you compare that to the other two choices, this is obviously the kind of card you will want to go for.
Unfortunately if you do have a bad credit history this is just something that you will need to do to begin to rebuild your credit and over time you will be able to qualify for better rates with a higher limit.
If you are hoping to rebuild your credit score ratings, having the third card is going to be of great value to you and will help you to save thousands in interest and finance charges when you do want to make any major purchases.
Credit cards? Bad Credit? You can find the one that is best for you but again I have to repeat READ THE FINE PRINT.
You will have to pay the price for having bad credit but in the end it will be well worth the time and effort that you need to put in now to rebuild your credit so that you will be able to take advantage of opportunities that will come your way in the future.
When applying for credit cards bad credit will definitely make your chances of getting approved much more difficult.
So, what can you do to begin rebuilding your score? The first thing that you need to do is to get a credit card that is specifically intended for someone who has bad credit score ratings and when applying for any type of card you absolutely must read the fine print.
As I have stated in previous articles, this is an absolute MUST! While there may not be a lot of these types of cards available, the fact is that you can find them but while they may all seem to be the same they are not.
They will however all help you to rebuild you credit if you pay your bills on time every month because these companies will be sending your report to the credit reporting agencies and over time this will help raise your score.
You will be able to find a Visa or Master-card that you can use to make purchases with and this is something that you will want to do if you hope to save yourself some money on any future large loans such as for a mortgage or when buying a car.
Still, I cannot stress this strongly enough, if you remember nothing else that you read here, remember this...
Read the fine print!! Many of these card companies will hide the enormous fee that you will be charged in the fine print.
They will charge outrageous yearly fees as well as fees to set the card up and many will have a monthly fee already in their charges.
What this means is that by the time you get your card with a limit of $300 to $500, you will not even have an available balance left to make any purchases.
You will already have a monthly bill that you will owe just for getting that little piece of plastic.
So, I am going to share with you some details about some of these cards that are offered and as you will see, only one will actually be the type of card that you may wish to apply for.
Card Number 1.
While this card may give you a lower interest rate and is an unsecured card, in the find print there is a set up fee of $29 which may not seem too terrible however, there will also be a one time fee of $95 which means that so far you will already owe $124.
Think that's it? Nope, now you can add on another $98 annual fee and maintenance fees of $7 per month.
This brings your total to $306 which is most likely already higher than what your beginning available balance would have been leaving you with a card that is already over the limit.
While you can get this type of card and pay off the balance to begin to use it and rebuild your credit, this is not the type of card you will want unless it is the only one that you actually qualify for.
Let's look at card number 2.
Here we will already see an extremely high interest rate but it is still an unsecured card.
Still, this is already not a good offer and it gets even worse.
Set up fee? $29.
Not so terrible yet but when you add in the maintenance fees and the annual fees that are hidden in the fine print, you are going to pay over $263 just to have this card not to mention that you will be charged the annual fees every year.
Not a good card to go for.
Card Number 3.
This can be a card that is offered as both a secured or an unsecured card which will depend on how good or bad your credit history may be.
With an interest rate that is in the median rage it looks pretty good so far.
Still, there is the fine print which has that pesky one time set up fee of around $49 and an annual fee of between $79 and $99 and the best part is there are no maintenance fees.
So, this card will cost you about $148 per year and when you compare that to the other two choices, this is obviously the kind of card you will want to go for.
Unfortunately if you do have a bad credit history this is just something that you will need to do to begin to rebuild your credit and over time you will be able to qualify for better rates with a higher limit.
If you are hoping to rebuild your credit score ratings, having the third card is going to be of great value to you and will help you to save thousands in interest and finance charges when you do want to make any major purchases.
Credit cards? Bad Credit? You can find the one that is best for you but again I have to repeat READ THE FINE PRINT.
You will have to pay the price for having bad credit but in the end it will be well worth the time and effort that you need to put in now to rebuild your credit so that you will be able to take advantage of opportunities that will come your way in the future.