1. Never Pay Up Front
The first factor you would like to understand when dealing with dangerous credit credit cards, and unhealthy credit cards in general, is that no legitimate credit card offer is going to require you to pay money up front. If a credit card company won't process your application while not you sending in an up-front fee, it's a scam. There's no ifs, ands, or buts regarding it.
2. You Might Have to Pay For it
Now, just as a result of you are not going to pay up front for bad credit credit cards does not mean you aren't going to pay at all. When credit card firms need an annual fee, it doesn't mean that it's not a legitimate credit card offer.
The difference between the bad credit cards and the good credit cards is that the great credit cards can charge your annual fee to the credit card they're issuing -- they will not ask for you to pay the fee up front.
3. Interest Is Going To Hurt -- But It Doesn't Have To Kill You
When coping with bad credit credit cards, you are going to own to pay the next interest rate than folks with good credit. That doesn't, but, mean that you should pay through the nose.
If you're being charged additional than 20 % interest, you are dealing with bad credit cards. Even with bad credit, you ought to be in a position to stay your interest rate below 20 percent.
4. You Might Would like to Secure It
If you're credit isn't good enough to enough to qualify you for an unsecured mastercard, you would possibly have to accept a secured one. This suggests that you will have to allow a security deposit that will be used to confirm your credit limit.
If you deposit $200, your credit limit should be $200. However, some of the unhealthy credit cards can raise you to deposit more than the credit line they're issuing you.
If this can be the case, go elsewhere for your mastercard needs.
5. Secured vs. Prepaid
Now that we tend to've lined secured credit cards, it's important that you simply perceive that secured credit cards are very totally different from prepaid credit cards.
While prepaid credit cards do serve a purpose, they are bad credit cards if you're making an attempt to rebuild your credit, since they do not report something to the credit bureuas.
Make certain when applying for a secured credit card that the mastercard company can report your payments to the credit reporting agencies.
6. Adding it Up
When applying for bad credit credit cards, create sure the fees and credit limit offered create sense in relation to 1 another.
There are some terribly unhealthy credit cards out there that charge exhorbinant fees and issue very little lines of credit.
For example, they company could charge a $79 annual fee and a $85 processing fee, but solely issue you a $200 line of credit. This suggests that you simply have a credit line of $36 offered when the cardboard arrives, and a debt of more than $160.
7. Watch Those Grace Periods
When handling unhealthy credit credit cards, you fully must watch those grace periods and pay close attention to when your payment is due.
Some bad credit cards will have almost no grace period at all, and when you receive the bill, the payment is already due -- leaving you no time to send your payment in.
This can be bad for you and sensible for the credit card company.
Why?
As a result of these unhealthy credit cards will then tack on late fees and will increase your interest rate due to the "late" payment that you simply had no management over.
Therefore, follow these seven fundamentals to help avoiding obtaining stuck with bad credit cards -- regardless of your credit rating.
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Barbara K Howard has been writing articles online for nearly 2 years now. Not only does this author specialize in Credit, you can also check out his latest website about:
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