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TERMS AND CONDITIONS APPLICABLE TO BAD
CREDIT CREDIT CARDS
Having a bad credit report will not
only hurt your present situation but
also your future financial situation.
One method to keep you safe from the
evils of debt is by using the credit
card responsibly. But if you are already
deeply got in to bad credit then the
only option for you is the bad credit
credit card. These are very similar to
the regular credit cards but are
designed only for the high risk
individuals.
You are branded as a high risk
individual by the credit card companies
because your credit score is very low.
The “Bad Credit Credit Card” must be
responsibly used by you so that your
situation will not worsen. If you feel
that you will not be able to pay the
monthly instalments for this card also,
then it is advisable that you just don’t
apply till you are in a better
situation. However, if you think you can
manage it then do the proper research
before you apply for it. You should
check out some of the common terms and
conditions for these cards before you
apply for it.
Credit Limits
The credit limits are very low in “Bad
Credit Credit Cards”. The highest
possible limit you will be able to get
will be about $1000. This is done to
protect your interests, to stop you from
over spending again and get in to a lot
more trouble. Therefore, do not mistake
it as a drawback.
APR rates
The APR rates on these cards are
reasonable and are around ten percent.
Do your research properly and find the
card that will offer the lowest rate.
This will not only save you money but
will also make the monthly instalments
much lower and make it easy for you to
pay it back on time.
Reporting to Credit Bureau
Be sure that the company that issues the
credit card to you will report your
transactions to all the major credit
card bureaus. This is very important
because it will help improve your credit
score. If a company is not doing this
then choose another company which does
report to the credit bureaus. Therefore,
call the customer care and verify with
them. Also, try to verify the
information on the internet.
Fees
With most types of credit cards the
annual fees is not longer charged,
however with the “Bad Credit Credit
Card” you have to pay an annual fee.
Don’t try to waste your time and energy
in finding a company that does not
charge this fee. The credit card
companies charge about $50 as annual fee
for the “Bad Credit Credit Cards”. This
is done to protect the company. It is
one fee which you have to accept when
you have low credit score, but need some
credit.
Another fee that is common with the “Bad
Credit Credit Card” is the enrolment
fee. Again, this is not applicable for
the regular credit cards. But for the
“Bad Credit Credit Cards” there is no
other option but to accept it.
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