Usually, a person who has a credit card problem also has other major monetary problems like high mortgage, insurance, and auto loan rates. Quite often they have problems getting approved for some of the better credit cards. Being in this situation can be frustrating and stressful. Most consumers ask about what they can do to increase their credit score. Actually, the best thing to do is get a credit card custom tailored for people with bad credit. Always read the fine print.
Credit cards for people with bad credit are quite not so many. Some look very similar at first glance. The main way they help you is by reporting to the credit agencies every month, and telling them that you are paying your balance in a responsible manner. They don’t always offer the best rates, but by increasing your credit score now, you are in fact saving yourself thousands of dollars in future interest payments. That’s why it’s very important that give attention to the fine print, to make sure you don’t get taken for a bumpy ride. I will show you three credit cards as an example; one of them truly stands out as friendly to the consumer.
Credit Card #1: It charges a very low interest rate for an unsecured credit card. But, your first fine print look on it shows that there is a one time setup fee of $29. Not so bad, right? So far, since the next charge is a one time fee of $95. So at the moment we have $124 in expenses. So, is this everything to it? No. Add in another $48 for the annual fee and $6 per month in account maintenance fees. So now, the cost of your new credit card is $244 for the first year, and $120 for each additional year. This is no small change, and a card such as this should be considered only if you cannot be accepted for a better unsecured credit card for bad credit.
Credit Card #2: This credit card charges a very high interest rate for an unsecured credit card. This isn’t good. However the setup fee is only $29which makes you think that maybe this isn’t so bad. There is that monthly maintenance fee of $6.50 per month which makes the cost of this unsecured credit card $107. So you think it is quite cheaper than the first one right? You are wrong. The annual fee is a whopping $150. Yes, $150 every single year. That not only brings the initial cost up to $257, but you also have to pay $228 a year just to maintain the credit card. This is a bad credit card offer to take.
Credit Card #3: This credit card can be available either secured or unsecured, depending on the issuer’s review of your credit history. The good news is, the interest rate is average, even competitive. Now, the fine print reveals that there is a one time setup fee. But, based on your credit, this fee can be as low as $0 or as high as $49. So far it is good, especially if your credit is not that bad. So you might be thinking that they would have a seriously high annual fee, to make up with the least expensive rate. Well, not exactly. The annual fee for a secured credit card is only $35, and for an unsecured credit card, this fee can be as low as $39 or up to $79. So far, the cost of this card ranges from $35 to $128. So how about the monthly maintenance fee for this credit card? This one has to be huge right? Surprisingly, it is 0$, which means the most you could possibly be charged to obtain this credit card is $128, that is about 50% on credit card fees that you would have to pay for each of the other two.
There is absolute difference between “bad credit” credit cards. Out of the three that we have examined, only one doesn’t rob your pocket. In fact, credit card #3 provides great value. All positive changes to your credit history and credit score will translate into lower loan rates, lower credit card interest rates, lower insurance rates, and best of all, thousands of dollars in savings. Rebuilding your credit has its own difficulties, but in the long term, rebuilding your credit with a “bad credit” credit card is the fastest and most cost-efficient way to correct the problem that has made your credit bad in the first place.
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Usually, a person who has a credit card problem also has other major monetary problems like high mortgage, insurance, and auto loan rates. Quite often they have problems getting approved for some of the better credit cards. Being in this situation can be frustrating and stressful. Most consumers ask about what they can do to increase their credit score. Actually, the best thing to do is get a credit card custom tailored for people with bad credit. Always read the fine print.
Credit cards for people with bad credit are quite not so many. Some look very similar at first glance. The main way they help you is by reporting to the credit agencies every month, and telling them that you are paying your balance in a responsible manner. They don’t always offer the best rates, but by increasing your credit score now, you are in fact saving yourself thousands of dollars in future interest payments. That’s why it’s very important that give attention to the fine print, to make sure you don’t get taken for a bumpy ride. I will show you three credit cards as an example; one of them truly stands out as friendly to the consumer.
Credit Card #1: It charges a very low interest rate for an unsecured credit card. But, your first fine print look on it shows that there is a one time setup fee of $29. Not so bad, right? So far, since the next charge is a one time fee of $95. So at the moment we have $124 in expenses. So, is this everything to it? No. Add in another $48 for the annual fee and $6 per month in account maintenance fees. So now, the cost of your new credit card is $244 for the first year, and $120 for each additional year. This is no small change, and a card such as this should be considered only if you cannot be accepted for a better unsecured credit card for bad credit.
Credit Card #2: This credit card charges a very high interest rate for an unsecured credit card. This isn’t good. However the setup fee is only $29which makes you think that maybe this isn’t so bad. There is that monthly maintenance fee of $6.50 per month which makes the cost of this unsecured credit card $107. So you think it is quite cheaper than the first one right? You are wrong. The annual fee is a whopping $150. Yes, $150 every single year. That not only brings the initial cost up to $257, but you also have to pay $228 a year just to maintain the credit card. This is a bad credit card offer to take.
Credit Card #3: This credit card can be available either secured or unsecured, depending on the issuer’s review of your credit history. The good news is, the interest rate is average, even competitive. Now, the fine print reveals that there is a one time setup fee. But, based on your credit, this fee can be as low as $0 or as high as $49. So far it is good, especially if your credit is not that bad. So you might be thinking that they would have a seriously high annual fee, to make up with the least expensive rate. Well, not exactly. The annual fee for a secured credit card is only $35, and for an unsecured credit card, this fee can be as low as $39 or up to $79. So far, the cost of this card ranges from $35 to $128. So how about the monthly maintenance fee for this credit card? This one has to be huge right? Surprisingly, it is 0$, which means the most you could possibly be charged to obtain this credit card is $128, that is about 50% on credit card fees that you would have to pay for each of the other two.
There is absolute difference between “bad credit” credit cards. Out of the three that we have examined, only one doesn’t rob your pocket. In fact, credit card #3 provides great value. All positive changes to your credit history and credit score will translate into lower loan rates, lower credit card interest rates, lower insurance rates, and best of all, thousands of dollars in savings. Rebuilding your credit has its own difficulties, but in the long term, rebuilding your credit with a “bad credit” credit card is the fastest and most cost-efficient way to correct the problem that has made your credit bad in the first place.
No related posts.
