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 wayâ€¦
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.
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
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.
How much will a Bad credit Credit Card Cost You?
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:
Â· Set up costs include: account fees (unavoidable), annual fee, maintenance fees (paid monthly)
Â·Other incurred fees: late fees, online access fees, return product charges, extended credit limit fees, charges on auto draft etc.
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:
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.