Credit Cards For People With Bad Credit - What To Be Aware Of
In need of a credit card but finding it hard due to a bad credit record? You probably know some of the facts about credit cards for people with bad credit and things are obviously not so good as those folks with good credit ratings. Nevertheless, we should not see this purely as a short term goal here.
Regardless if you are searching online or off, the facts remain the same - you need to study the terms and conditions of each possible card before deciding to apply.
Facts remain the same regardless if you are trying to find a credit card on the internet or off the internet - you still need to study the terms and conditions of those cards that seem attractive to your needs and ensure there are no hidden costs involved once you have it in your possession and begin using it. Do take into account the following points:
- Over Limit Fees or Late Payment Fees Credit cards for people with bad credit can be costly, and just when you need to keep your spending to the minimum too so don't go mad with your card whatever you do! You will be hit hard with fees if you start making late payments to your account or if you go over your credit limit. Its very wise to keep a close eye on what your spending is and make sure you do not miss a payment date. Also, if you are near your credit limit and you make a late payment to clear part of your balance at least, you will firstly be charged for the late payment and secondly you could then go over your limit due to the charges. This could then also have a knock-on effect to the interest charges you pay on the card, all for the worse!
- Late Payment or Over Limit Fees Credit cards for people with bad credit are very expensive if you begin on the road to making late payments or going over your credit limit. If you are in the habit of making late payments and not paying the full balance the fees can become crippling. It can become a domino effect, where one "mistake" then leads to another and before you know it you can't afford to pay the fees as well as the balance on the card. Watch out too if you are near the limit of your credit - a single late payment penalty could push you over the limit and hit your cash flow even harder. Added to this, chances are good that your bank will increase interest rates on the card - sometimes to as high as 39 per cent!
- Annual Fee A card with an annual fee is generally pure profit for a bank, although it can be the only profit they make if a card holder pays off the balance in full every time. You should balance this wisely - if you tend to paying off your balance every time then the interest rates do not matter to you and you should look for a card with no or a small annual fee. If you tend not to pay off your balance then lower interest rates are probably more important than the annual fee.
So over all it may seem a little bleak with regards credit cards for people with bad credit. However, its not all bad but rather it is a case of being sensible and using the card within your means. And make sure you don't make late payments or go over your limit as you will pay the penalties for sure!
Regardless if you are searching online or off, the facts remain the same - you need to study the terms and conditions of each possible card before deciding to apply.
Facts remain the same regardless if you are trying to find a credit card on the internet or off the internet - you still need to study the terms and conditions of those cards that seem attractive to your needs and ensure there are no hidden costs involved once you have it in your possession and begin using it. Do take into account the following points:
- Over Limit Fees or Late Payment Fees Credit cards for people with bad credit can be costly, and just when you need to keep your spending to the minimum too so don't go mad with your card whatever you do! You will be hit hard with fees if you start making late payments to your account or if you go over your credit limit. Its very wise to keep a close eye on what your spending is and make sure you do not miss a payment date. Also, if you are near your credit limit and you make a late payment to clear part of your balance at least, you will firstly be charged for the late payment and secondly you could then go over your limit due to the charges. This could then also have a knock-on effect to the interest charges you pay on the card, all for the worse!
- Late Payment or Over Limit Fees Credit cards for people with bad credit are very expensive if you begin on the road to making late payments or going over your credit limit. If you are in the habit of making late payments and not paying the full balance the fees can become crippling. It can become a domino effect, where one "mistake" then leads to another and before you know it you can't afford to pay the fees as well as the balance on the card. Watch out too if you are near the limit of your credit - a single late payment penalty could push you over the limit and hit your cash flow even harder. Added to this, chances are good that your bank will increase interest rates on the card - sometimes to as high as 39 per cent!
- Annual Fee A card with an annual fee is generally pure profit for a bank, although it can be the only profit they make if a card holder pays off the balance in full every time. You should balance this wisely - if you tend to paying off your balance every time then the interest rates do not matter to you and you should look for a card with no or a small annual fee. If you tend not to pay off your balance then lower interest rates are probably more important than the annual fee.
So over all it may seem a little bleak with regards credit cards for people with bad credit. However, its not all bad but rather it is a case of being sensible and using the card within your means. And make sure you don't make late payments or go over your limit as you will pay the penalties for sure!
About the Author:
Find out more about credit cards for bad credit and credit cards for people with bad credit.