Have you been looking for a great credit card for bad credit? You're not alone. A good number of consumers have found themselves in credit trouble and in need of such a card. The problem is that there are dozens of bad credit credit card offers out there and I wouldn't wish more than half of those cards on my worst enemy.
How do you tell the good from the bad? By looking at these specific terms.
1. Interest
If you need a credit card for bad credit, you need to make sure you don't fall for the "you deserve a bad interest rate" line of thought. So you have damaged credit... So what? Everyone makes mistakes and it's not the end of the world. It definitely doesn't mean you should fork over 30 percent interest.
Believe it or not, you can find a credit card for bad credit that offers a decent interest rate. You just need to do a bit of searching. If a card charges more than 20-percent interest, run in the other direction.
2. Fees
Fees, fees and more fees... You would NOT believe some of the fees certain companies will try to charge you for a credit card for bad credit.
An annual fee IS acceptable. An annual fee of $100 or more is NOT. Also make sure that you don't get taken with any "processing" fees, "application" fees or monthly "participation" fees. You're going to be paying an annual fee and interest. There is absolutely no reason a credit card company should need more money than that to offer you a credit card for bad credit.
3. Up-Front Money
Has a company offering a credit card for bad credit tried talking you into sending money in up front (other than a security deposit)? If so, run in the other direction and run fast.
No legitimate credit card company makes you pay up front for a credit card for bad credit and they definitely won't make you pay hundreds of dollars for the privilege of carrying one of their cards. If a sales rep tells you otherwise, they're not offering a credit card for bad credit -- they're running a scam.
4. Grace Periods
Late payments got you here to begin with -- you want to avoid them at all costs. Making sure that you find a credit card that offers a reasonable grace period is key.
There are some bad credit credit card offers out there for cards that have a short grace period (or no grace period at all). Do yourself a favor and avoid them. Only apply for credit cards with a grace period of at least 20 days.
And, of course, remember that a bad credit credit card is a temporary solution. When you do find the right credit card for bad credit, make sure that you prove yourself and pay your bills on time each and every month. Then, in about a year, apply for a credit card with better terms and put your credit card for bad credit away for good.
