Advice, Featured

Bad Credit Cards and Their Usefulness

If you have poor credit history, then you have no choice but to resort to a Bad credit card. Unfortunately this is a, minefield in terms of financial safety, to get into.

Bad credit card companies are notorious for their high and quite often unfair interest rates. They have very low standards when it comes to valuing your credit rating. This makes it easy for anyone to get a credit card from them. However, when you have a need to resort to one of these companies, don’t choose one on a whim. You need to do extensive research before you take a decision.

Every credit card has its own peculiar set of rules and regulations. You need to understand everything that is stated in the terms and conditions. This is because they can offer you low interest rates and then catch you out with hidden charges and a whole load of restrictions. You also need to check on other fees like over-the-limit fee, late penalty fee, annual fee, etc. One more thing to keep in mind is that the interest rate is usually based on the Prime Rate, which can change abruptly.

But the silver lining here is that by choosing a Bad credit card company that reports to the three major credit bureaus, you have a good chance of improving your credit status. Assuming you make payment promptly, these payments will be reported to the bureaus. Thus your credit rating improves.