Avoiding Bad Credit Fees
Usually people have bad credit problems after they invest in a mortgage, an insurance company or avail an auto load but cannot seem to pay. Due to the problem of having a bad credit score, you are risking your chances on getting some other better cards approved. This is really annoying of course especially on your end. I have heard of this website which always get bad credit card emails from their customers and they are asking if there are anyways to increase their credit scores. From what I’ve read, what they recommend to people with bad credit are Credit Cards made for people who really have bad credit. This type of card is different, the fine print can trick you so better read it and most especially read about the card fees.
As what we have talked about above, the credit cards that were mentioned which is made for people who have bad credit are very rare but once you find them it’s really worth it. The main purpose of these kinds of credit cards is to help improve your lousy credit score. What these companies do is, they contact specific agencies concerning credit and inform them that you pay your fees on time. This will indeed save you money from future investments. That is the reason why we were asking you to read the fine print. Another reason why we are recommending you to read the fine print is this, below are three examples what some bad card companies hide in their fine prints.
Example number one: This card has a very low interest rate, considering that this is an unsecured card. If you magnify within the fine print, you will see that there is a setup fee, which they charge only one time of $29. It’s not too bad, but wait there’s more! There’s another $95 onetime fee which they will charge you. So that’s about $124. There’s still the annual fee worth $48 and the account maintenance fee which is $6, paid monthly. This brings us to $244 for the first year and an addition $120 charger per succeeding year. The reason why you should only consider this card is because you cannot get accepted for other better credit cards due to the fact of your bad credit.
Example number two: This card has an unusual high interest rate for an unsecured card. This is not good. The setup fee is $29. Are you having second thoughts about this card? Read more. Like the other card this card has a monthly maintenance fee of $6.50 paid monthly. Summing up all the expenses brings us to $107. Some more second thoughts? Think of this, their annual fee is $150, it’s amazingly BIG! Summing it some more brings up to the cost of $257 for the first year then in order to maintain the card you would need to pay $228 a year. I guess this isn’t the best offer out there.
Example number three. This credit card comes in both secured and unsecured. The issuer needs to review your previous credit history and he will decide. This card has an average interest rate, not bad? The fine print also tells us about a onetime setup fee and the fee is computed based from your credit. It can range from $0 or to $49. This is very nice especially If you have good credit. The annual fee for the secured credit card is as low as $35 then the unsecured credit card’s annual fee can range from $39 or as high to $79. Guess what? There is no monthly maintenance fee! This card is the best among all the cards from the list right?
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