Bad Credit Card
"Bad credit card" used to refer to a
card that would most likely get cut in half if it was
used again. However, as the credit industry has grown,
a bad credit card can now refer to a card issued to
a person who has a history of bad credit. The introduction
of these cards has proven to be a much-needed second
chance for many people who thought they would be saddled
with bad credit for the rest of their lives.
"There Has to Be a Catch...?"
It would be na´ve to think that issuing
cards to people with bad credit is a completely altruistic
act on the part of the credit card companies. Most of
these cards feature high interest rates and very low
spending limits. Many also require a substantial annual
fee to be paid. Some people believe that companies are
simply preying on those with bad credit by taking money
from people who, in all truth, should not have a credit
card. However, there are a few cards that are truly
designed to help people reestablish good credit.
Finding a Low APR Bad Credit Card
A credit card with a low fixed rate makes
it much easier for a person to pay the bill on time.
It also allows a card member to actually pay off principal
as opposed to simply paying off interest each month.
Many of these low APR bad credit cards have low spending
limits, as well, so no matter what happens, a person
cannot add up too many purchases on the card. The 1st
Premier Bank Gold Visa is one of the most popular
cards for people with bad or no credit. Its low rates
and bonus features are designed to help people rebuild
their credit. The Continental Visa and the Orchard Bank
Master Card are two of the few other cards that people
with bad credit can be approved for.
Steps to Take:
- Take time to fully assess the extent of your debt--you
may wish to consult with a professional.
- Make a firm commitment to mending your credit.
Communicate to your family that spending patterns
will be changing.
- Consider whether a "bad credit
card" or debt
consolidation will serve you better.
- Take time to find the right card or consolidation
resource--a company that can offer multiple options
will be your best bet.
Read about Bad
Credit Basics in the Banklady Credit Library