Having a bad credit and under perfect credit history, obtaining a credit card with competitive features isn’t that easy. In the following paragraphs we check out the five major drawbacks that include a poor credit credit card.
1. High APR
Having a bad credit credit card the eye minute rates are reasonably greater. Forget individuals % intro APRs- they rarely have a bad credit credit card. So, keep the credit card balances low, to prevent this high APR from burning an opening in your wallet.
2. Once processing fee
Some credit card companies charge a processing fee for those who have bad credit who make an application for credit card. This really is generally billed by credit card companies because of the credit checks, other formalities and risk involved with supplying a credit card to bad credit people. If you are planning for any guaranteed bad credit credit card this charges could be waived, otherwise it needs to be compensated. The issue here’s that credit card companies demand upfront payment of processing fee. But, a sensible credit card consumer will discover a credit card issuer that charges the charges towards the credit card not demands money in advance.
3. High annual fee
Maintaining your bad credit credit card is certainly likely to be expensive when it comes to annual charges with respect to the credit report sometimes it can go in 100’s of dollars per year. Bad credit credit cards with annual charges offers are tough to find.
4. High overtime fee
Overtime having a bad credit credit card is seriously penalized. The credit card companies charge heavy overtime penalties on repayment default and therefore are extremely swift in reporting the default to credit rating agencies having a bad credit credit card.
5. Lower credit limits
Since, the credit card companies face elevated risk in supplying credit card to bad credit people, and so the credit limits are lower. The credit limits could be elevated with guaranteed bad credit credit card and proper repayment of credit card balances.
These 5 factors related to bad credit credit cards increase the price of owning one. Evaluating various credit card offers, especially, if you have a poor credit can help you lower the eye and charges burden of the bad credit credit card.