By David
Finding the right credit card can be a difficult process for anyone, but it is even more so for those with poor credit ratings. Many lenders avoid these people like the plague, severely limiting the number of option available to them. Fortunately, some lenders are a bit more willing to give people second chances, so they have created credit card options for those with bad credit.
Here are a few things you should consider when you compare credit cards bad credit:
Secured or unsecured
Depending on how bad your credit history is, you might not be able to get an unsecured credit card. What is an unsecured credit card? That is when the lenders issue you a line of credit without collecting any collateral. Obviously, if you have a track record of late payments or even non-payments, credit card firms will be less likely to issue you a line of credit without guaranteeing they will be able to get their money back, so you will probably be limited to secured cards. Secured cards work a lot like bank debit cards, but they do report your spending and payment patterns to the credit bureaus, just like their unsecured counterparts.
Click here to compare credit cards bad credit
Annual Fees
Since there is a lot more risk involved with issuing a credit card to someone with poor credit history, most lenders charge some sort of annual fee. In most cases, the fees are reasonable, but there are a few credit cards out there with very high annual fees. Make sure you compare the annual fees on multiple credit card lenders before deciding which one is right for you.
Interest rates
For the most part, cards issued to those with a negative track record when it come to repaying debts usually have higher interest rates, again, to make up for the increased risks associated with issuing lines of credit to those with low scores. Obviously, you want to look for the credit card with the lowest interest rate possible when you compare credit cards bad credit. Of course, if plan on rebuilding your credit history, the interest won’t matter much to you since you will be paying off your entire balance in full every month. Still, it is always idea to go for the credit card with the lowest interest rates.
Miscellaneous charges
While you compare credit cards bad credit, you should certainly go through the detailed terms and conditions of the lending institutions, as you do not want any surprises after you sign up for the card. Find out what type of fees you will be looking at if for some reason you are unable to pay your bill on time. Will your interest rate jump up to something else if you miss a payment or go over your spending limit? That is something else you might want to think about before deciding which credit card provider is right for you.
By following the above tips, you shouldn’t have any problems singling out the credit card that is right for you, even if you have bad credit.
Leave a Reply