The Truth About Bad Credit Unsecured Credit Cards
Bad credit unsecured credit cards can be the credit card
holy grail to those who have suffered bruises to their
credit history. However, they're not always easy to find
and there's quite a bit of misinformation surrounding them.
Fortunately, finding the right bad credit unsecured credit
cards is as easy as understanding a few simple facts.
1. There's No Such Thing as a Free Ride
If you have bad credit, don't expect to qualify for a
credit card with low interest and no annual fee. Lenders
will see you as a high risk and because of this, bad credit
unsecured credit cards usually come with higher interest
rates and some type of annual fee attached. That doesn't,
however, mean that you should pay through the nose for the
privilege of having a credit card.
There are some bad credit unsecured credit cards out there
that will try to charge high annual fees, application fees,
processing fees and then a high interest rate on top of all
of these other costs. Don't fall for it.
2. Know When Enough is Enough
Yes, you're going to have to pay more for your credit
privileges than those who have perfect credit. That doesn't
mean you should have to pay an arm and a leg.
I have seen some bad credit unsecured credit cards offer a
credit limit of $250 and then charge an annual fee of about
$60, a processing fee of nearly $100 and an application fee
of $50 or $60. This leaves you with about $40 to $50 worth
of available credit when you finally get your credit card.
This isn't a good scenario.
There are bad credit unsecured credit cards that charge
only an annual fee of $30 to $60 and no processing or
application fees. These are the cards you want to go with.
3. Acceptable Interest Rates Only
Just like you shouldn't spend too much money on the fees
associated with bad credit unsecured credit cards, you
shouldn't spend too much money in finance charges either.
Just because you have bad credit doesn't mean that you
should pay horrific interest rates.
While it is true that many bad credit credit cards charge
in excess of 20 percent interest, there are many bad credit
unsecured credit cards that charge much, much less.
4. No Money Up Front
People with bad credit are sometimes desperate for an
unsecured credit card, and some unscrupulous con artists
are well aware of this fact. There are some scams
circulating that involve people sending in cash up front
for bad credit unsecured credit cards. Don't fall for them.
Any credit card company that wants you to send in money
before you get your credit card is a company you shouldn't
be doing business with. Legitimate companies will charge
any fees associated with their accounts to your new credit
card so you don't have to send in money up front. In other
words, the card is in your hand before you send them a dime.
5. Loyalty Isn't For Lenders
People are oftentimes creatures of habit. They get used to
something and don't want to think about changing the
routine as long as it's working for them. Don't let this
happen with your bad credit unsecured credit cards.
Sometimes the grass really is greener on the other side.
Once your credit has improved, try applying for credit
cards with better terms.
While it's true that bad credit credit cards can be murky
waters to tread in, it doesn't have to be that way. By
keeping the above five facts in mind, you should be able to
navigate the world of bad credit unsecured credit cards
easily and with great success.
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For more tips on getting the best bad credit credit cards,
saving money and avoiding getting taken, check out
CreditCardTipsEtc.com, a website that specializes in
providing credit card tips, advice and resources.
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