Have you wondered what exactly is up with
picture of a visa credit card
"Bad Credit" Credit Cards: How You Can Avoid High Fees
Individuals with problematic credit histories often suffer unfairly from high mortgage, insurance, and car loan rates. On top of that, they have difficulty getting approved for credit cards. The whole situation can get extremely frustrating. Frequently, I get emails from consumers wondering what they can do to rebuild their credit. The first thing I tell them is to get a credit card designed for people with bad credit. The second thing I tell them is written in bold: READ THE FINE PRINT.
There are only a limited number of credit cards for individuals with bad credit. At first glance, many look the same. They all help build and rebuild your credit by reporting to the major credit bureaus on a monthly basis. They all provide you with the Visa or Mastercard you need to make many purchases. And they are all necessary evils that can save you thousands of dollars in mortgage and car loan rates in the future. However, you must read the fine print before applying for one of these credit cards, as they often charge high yearly fees, set-up fees, and even monthly fees. Here, I will examine a few examples of charges current bad credit credit cards bury in the fine print. Of the three major cards I will examine, only one stands out as consumer-friendly.
Bad Credit Credit Card #1: This credit card charges a very low interest rate for an unsecured credit card. However, your first fine print glimpse reveals that there is a one time setup fee of $29. Not too bad. So far, since the next charge is a one time fee of $95. So far, were up to $124 in expenses. That's got to be it, right? No. Add in another $48 for the annual fee and $6 per month in account maintenance fees. Thats brings the cost of your new credit card to $244 the first year, and $120 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.
Bad Credit Credit Card #2: This credit card charges a very high interest rate for an unsecured credit card. This cant be good. But the setup fee is only $29. Maybe this card
isn't so bad. There is that pesky monthly maintenance fee of $6.50 per month which brings the cost of this unsecured credit card to $107. Maybe we've found a bargain. Not quite. The annual fee is a whopping $150. Yes, $150 every year. That not only brings the initial cost up to $257, but you will also pay $228 a year just to maintain the credit card. There has to be a better offer.
Bad Credit Credit Card #3: This credit card is available as both a secured and unsecured credit card, based on the issuers review of your credit history. The interest rate is average, even competitive. Now, the fine print reveals that there is a one time setup fee. However, based on your credit, this fee can be as low as $0 or as high as $49. So far so good, especially if your credit is not that bad. But, there must be a huge annual fee. 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. Now its time for the monthly
maintenance fee. This one has to be huge. Or not. Its $0. That means the most you could possible be charged to obtain this credit card is $128, about half of what competing cards are charging.
Clearly, there are substantial difference between bad credit credit cards. Of the three offers we have examined, only one doesn't take you to the cleaners. In fact, bad credit 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 ultimately, thousands of dollars in savings. The path to rebuilding credit has its costs, 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 often unfortunate circumstances that have damaged your credit in the first place.
About The Author
Jeff Weber is President & CEO of Credit Card Depot Inc., an online information provider that specializes in the credit card industry. For information on "bad credit" credit cards, visit http://www.credit-card-depot.com/bad-credit-applications.htm.
More Useful Resource and Updates on picture of a visa credit card
- Apply Online for Shoreline Construction (The Chattanoogan)
Small projects include building a boat dock, pier or boat ramp or stabilizing the shoreline. Prior to beginning any construction activities on the shoreline, a TVA 26a construction permit is required.
- Online resumes create ID theft risk (Yahoo! Tech Advisors)
You are of course well-advised to keep your resume up to date these days, what with the economic malaise and rampant layoffs. It's probably a good idea to post it to online job services and apply for interesting jobs here and there... you know, just in case. Sadly, online job applications are also a great entry point for crooks looking to steal a few identities: All it takes is a fake job ...
- Bart's Bytes: (Westerly Sun)
Contrary to what many think, the Internet is the perfect place for credit cards. There is virtually no danger of the number being stolen in transit. I shop on the Internet almost exclusively. I?ve been doing it for years, all from the comfort of my home and office.
- Expedia launches affiliate programme for agents in the UK (eyefortravel.com)
Travel agents in the UK will have direct authorised access to Expedia inventory as the online travel company shared its plans to launch its Travel Agencies Affiliate Programme (TAAP) in the UK.
- More Than 1 Million College Students Offered Education in Practical Money Skills From Wells Fargo (Centre Daily Times)
Wells Fargo & Company (NYSE:WFC) said it has offered Practical Money Skills for Life to more than 1 million college students the last five years. Practical Money Skills for Life features two online credit education lessons sponsored by Wells Fargo and Visa.
- School?s in session - how to choose, use credit cards (Dothan Eagle)
College students, listen up - especially freshmen. On campus this semester, credit-card companies are going to hunt you down. They will send credit-card solicitations to your dorm mailbox, staff tables around campus and offer you cool handouts if you apply for their card.
- TVA offers online permits for shoreline construction projects (Knoxville News Sentinel)
Area residents planning small construction projects along the shoreline of the Tennessee River and its tributaries or TVA reservoirs may now apply for construction permits online.
- CreditCards.com: Weekly Credit Card Rate Report (Centre Daily Times)
Annual percentage rates for credit cards barely budged, according to the CreditCards.com Weekly Credit Card Rate Report, as banks held rates steady despite a torrent of worsening economic news.
- Voter Groups Issue Election Report Card (The Epoch Times)
The New York Public Interest Research Group (NYPIRG) with several other civic groups issued a report card grading Mayor Michael Bloomberg and the Board of Elections (BOE) in their performance in improving election operations.
- Online job hunters at risk of ID fraud (PC Advisor)
CVs contain enough info to obtain a credit card Online job seekers are happily sending out personal information such as date of births and passport number when applying for jobs, which could be intercepted by cybercriminal.
- Visa USA | Life Takes Visa
Visa USA has information on Visa credit and debit cards, including Visa Classic, ... Quick Links. Find a Card. What type of card are you looking for? Personal ...
- Credit Card Fraud
... contain small pictures of a VISA, MasterCard and a CashPlus card on the upper ... Credit Cards. ANYONE CAN QUALIFY FOR A MAJOR CREDIT CARD! Separated? ...
- Visa (company) - Wikipedia, the free encyclopedia
Sample Visa credit card. Visa offers through its issuing members the following types of cards: ... will reveal the dove picture, as an additional security ...
- America First Credit Union :: Visa
Take advantage of the security, reliability, and convenience that comes with a Visa card. ... Picture Perfect. Visa Gift Cards ...
- Harley-Davidson Visa Check Card
Picture the coolest Visa card in the world... Sure, the Harley-Davidson ... Any other credit card held by a joint cardholder will remain valid, subject to ...
- America First Credit Union :: Picture Perfect Visa
Official homepage of America First Credit Union (America First Federal Credit Union). Your ... Visa Gift Cards. Credit Card Calculators. Visa® Picture Perfect ...
- PetRewards Visa
With the PetRewards Visa credit card from Bank of America, you'll earn points ... Put your pet's picture on your card or choose from one of three adorable designs ...
|
