Why do bad credit credit cards have high fees?
Those who suffer from low credit scores often have fewer choices when it comes to credit cards since the best credit card deals are usually reserved for customers with good credit. Nevertheless, even if you’re only option is a bad credit credit card, you should not put up with unfair rates and fees. This article talks about tips on finding bad credit credit cards with reasonable costs.
Yes, you can build credit with a bad credit credit card
Rebuilding bad credit doesn’t need to be an impossible feat. In fact, by applying for a bad credit credit card, a person with poor credit rating can work on improving his/her credit status one step at a time.
The most important step is to find a secured or unsecured credit card that regularly reports payments to the major credit bureaus. See to it that this card has reasonable terms and conditions. Use the credit card regularly on important purchases and be consistent with submitting your payments.
Here at Creditcreators.com we feel the ideal credit card for someone with a bad credit score is a secured credit card. With a secured card you can set your own credit limit (it will equal the amount you put down as a security) and generally within 2 years your secured credit card will become unsecured. Meaning you get your security deposit back, along with any interest earned.
If you don’t make the payments on time. Then your card will not become unscured. You will also have hurt your credit some more since your secured credit card will report the late payment on your credit report.
Avoid high credit card fees the High Fees
Unsecured credit cards for bad credit tend to have higher interest rates and fees than secured ones do. Although we personally don’t feel that unsecured bad credit cards are as helpful as secured ones. Some consumers simply can not come up with a security deposit. That’s when an unsecured bad credit card can come in handy. At least you are building credit and moving forward in your credit repair journey.
Finding the right bad credit card
Shopping around can be easily done through the internet. Check out forums that discuss potential cards for bad credit. Read online reviews so you’ll know which secured credit cards in the market are worth considering. Once you have your picks, spend a little more time analyzing your choices.
Ultimately, avoiding additional credit card fees would depend on how you manage your debts. If you’re going to charge monthly purchases to your card, you need to make sure that you can pay off your entire balance in full each month. Instead of paying for the additional APR, you can save this cost and use the money for more a valuable cause.
Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2016