Having lousy FICO scores, as we all know, affects our ability to pull out loans. As for the lending companies that do accept our request to borrow money, the rates we have to agree to are ridiculously high and the terms ludicrously unfair. The same thing does go to availing credit cards armed with pathetic credibility, also known to many as bad credit credit cards. Yeah there are some financial institutions willing to extend to the “unreliable” ones spending limits in the form of this typa service, but the show of generosity does come with a catch. Since you’ve worked so hard to “earn” the title of being “untrustworthy”, they won’t be able to treat you as they would with the credible crowd, which is only fair given that they’ve worked harder than you did.
Now, there are several aspects of the service that you have to take into consideration before you go leap for joy and avail it for yourself. Here they are:
the first thing that you should take into consideration is the Annual Percentage Rate, or the APR charged on the spending limitation extended to you. With this kinda service comes this “feature” of not enjoying the 0% APR other cards would come with. If SOMEHOW you manage to get the 0% intro rate, consider yourself to be extremely lucky. But again that’s rare, so in general, do whatever you can to keep your credit card balance low, so you won’t need to shell out lots of cash for payback.
The next thing to expect when you get bad credit credit cards is a limit that’s nothing to be proud of. Yes, you don’t get to enjoy a generous limit as offered by the normal type of card, but at least you do get something. There is a “method” that you could employ that’d give extend that limit though, and that is to avail the secured bad credit credit card, and pay the balances on time, all the time, every time. Hey, that brings up the next thing for you to watch out for, and that is incurring default payments.
Because you’re ever so undependable, you will be highly penalized for making late or default payments. When they’re done punishing you for what you’ve done, they’ll report you to credit rating agencies offering the same service. That means your reputation goes from awful to repulsive, which makes the task of borrowing even harder – so watch out. You know how some institutions offer 0 annual fees? Well with this service, that won’t be possible, if it is, it’ll be super hard to get such. In general, availing this type of service means you can be paying for hundreds of dollars for annual fees alone – watch out for this sucker too.
Lastly, applying will most likely mean you’ll be paying for a processing fee. The fees here can be eliminated if you go for the secured type though. To conclude, these are basically the things you should take into consideration before you do avail one for yourself, so you might wanna think it over before you get one.
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