Monday, October 11, 2010

What is bad credit card ?

Bad credit card is an option for people who want to use credit card but unable to get a good one because of their poor credit history. Even though there are hundreds of companies giving away these credit cards to people but it is your responsibility to make sure you are getting the most out of your money. 

These are some of the checks you need to make before going for a bad one:
• It is obvious that if you get a credit card despite your poor credit history, you are going to shell out a lot more than you should in terms of higher interest rate. Special care should be taken while choosing a card and you should follow the right steps to minimize your interest rate.
• If your credit history is really bad then it would be extremely hard for you to get an unsecured card. This means that you may have to go for a secured card which requires you to make a heavy initial deposit. This initial deposit will be used by the bank in case you fail to pay the instalments.
• Before going for any card, make sure that the card issuing company reports all your transactions to the federal agencies. This can be a very important step in building back your lost credit history.
• Also make sure that you get enough grace period to pay your bills. Many times customers are left with no grace period by the time they receive their bill. Make sure you don't fall into the same trap.
• Another thing that you need to consider before purchasing bad cards is; you shouldn't pay any start up fees. Some companies charge their customers unnecessary start up fees. Beware of such companies and shop around.
So make sure you prepare a thorough checklist before applying for a credit card!
Chris has written this article and likes to share articles on topics like bad credit Cards and compare credit cards.

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