People with bad credit are often confronted with the problem of choosing lenders and credit card companies. Since their only option is to apply for a bad credit credit card or a bad credit loan, credit card issuers and lenders may take advantage of their credit status.
When looking for a bad credit credit card, it is very important to do extensive research and comparison. Even if you have poor credit, that doesn’t mean you should settle for cards with unfair rates and deals. In this article, let’s talk about some tips to help you avoid poor credit card scams.
The Best Credit Cards for People with Bad Credit
These type of cards are designed for people with poor credit history. These cards do not have strict standards, particularly when it comes to your credit score. However, not all cards for poor credit offer a good deal.
Since each card has its own set of rules and conditions, it is up to you to examine the rules of your chosen card. Watch out for those that offer very low interest rates yet with hidden charges and too many restrictions. The only way you can make sure of that is if you take the time to read the complete Terms & Conditions of the card.
Aside from comparing the interest rates, don’t forget to check the other credit costs such as the annual fee, late penalty fee, over-the-limit fee, etc. Furthermore, if the interest rate is based upon the Prime Rate, you should know that it is bound to change at any time.
It is also a must to choose a card that will report your payments to the three major credit bureaus. Don’t forget that the only way you can rebuild your credit history is to have your payments are promptly reported. Take note that these type of cards have this provision.
Are you allowed to upgrade your account to a non-secured credit card after a year of consistent payments? Some bad credit credit cards will automatically upgrade your account while you may have to request other card issuers for this option. Obviously, it is crucial for you to submit your payments on time if you really want to boost your credit rating.
Lastly, spend time weighing your choices. Since it’s easy to get approved for this type of card, you don’t have to worry about getting rejected. However, you’ll want to make sure that you’ll be signing up with the right card and that you will not be taken advantage of. Spend time reading and understanding the complete list of terms and conditions. Some terms may not be clearly stated in the advertisement page. You’ll want to make sure that there are no vague clauses or hidden charges associated with your bad credit credit card.
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