While a applying and using a bad credit credit card can help you fix your credit history, maintaining one can be a quite an expensive affair. This expert article will show you the way…

A bad credit history given the current abysmal economic condition, can really make it difficult for mid-income families to make ends meet. With unemployment at a record high 10.05 % in the United States, a poor credit history can really make it really hard for consumers to pay off their credit. As credit card interest pile up, consumers find it difficult to be regular with their minimum payments and before they realize they have worked up a pathetic credit record.

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However, solution is close at hand for such consumers. Bad credit credit cards are designed keeping in mind consumers who have a poor credit record and have been refused regular credit card. While credit cards for people with a poor credit record definitely have some huge benefits, those planning to apply for one should carefully weigh the various pros and cons.

Bad Credit Credit Cards Can Help You Fix Your Credit Record

When you have been denied regular credit cards, because of your poor credit record, one of fastest ways of fixing your credit record is to apply for bad credit credit cards, being regular with your payments and getting your credit score up to par in a few months. You can then apply for regular credit card with a low annual fee and interest rates. But before going out and blindly applying for a bad credit credit cards consumers need to educate themselves about various credit card costs associated with bad credit credit cards.

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How much will a Bad credit Credit Card Cost You?

There are basically two types of costs associated with such cards. Unlike regular cards which are often offered for free, consumers are charged a fee to apply for bad credit credit cards. Credit card companies will charge you a fixed amounts (differs from company to company) at the time your account is being set up. The 'processing fee' as it's popularly known is absolutely unavoidable. The second type of fee you will be charged are the monthly interest rates and setup fees when you start using your credit card. These fees are negotiable and avoidable, if you can work your way around them.

In-depth Information on the Various Fees Charged on Bad Credit Credit Cards

To help you gain an insider's perspective on the various costs of such a card here's a quick breakup:

· Set up costs include: account fees (unavoidable), annual fee, maintenance fees (paid monthly)

·Other incurred fees: late fees, online access fees, return product charges, extended credit limit fees, charges on auto draft etc.

While it can be difficult to negotiate for a reduction in the setup costs of a bad credit credit card, one can easily get negotiate the amount charged on incurred costs. One can also save a lot of money by avoiding these additional costs by:

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  • Being regular with one's payments (will help you avoid late fees)

  • By purchasing things that one really needs (will help you avoid return product penalties)

  • By sticking to the credit limit imposed by the company (will help you avoid extended credit penalties)

Maintaining a bad credit credit card isn't as hard as people make it seem. By simply enlightening yourself about the various costs associated with such a card can help you avoid the insidious expenses that creep into your account and make you shell out a lot more money than you would need to. Now that you have been enlightened about the ways in which you credit card costs low, you won't hesitate to apply for one and quickly fix your poor credit rating.