If you're looking into or are using bad credit credit cards, it's probably because you've run into a few financial road blocks in the past. Nothing to be ashamed of -- it happens to the best of us. It definitely doesn't mean you should be treated like a second-class citizen in the world of finance, which is exactly what some credit card companies try to do. If you've been using bad credit credit cards, or are trying to apply for one, there are some things to keep in mind.
They Want What?
So, you've got bad credit and you desperately want a credit card. Joe Blow calls you up and has a great offer for you. A $5,000 credit limit at 9 percent interest. There's just a small annual fee of $200 or $300 (or maybe even $500) you have to pay to get started.
Listen here, and listen closely - you'd better hang up that phone and hang it up fast. This is not a legitimate credit card offer. It's a scam. Bad credit credit cards do have annual fees attached to them, but you never pay them up front. If you do, you'll be stuck without a card and without your cash.
Paying For the Privilege
We pay for quite a few privileges. We pay for the privilege of running water. We pay for the privilege of renting a movie for two or three nights. We should never, ever pay for the privilege of sending a credit card payment in to our credit card company.
There are at least one or two bad credit credit cards that charge $7 or $8 to customers who wish to make online payments. This is abuse, my friends, and it shouldn't be taken lightly. If a credit card doesn't offer free online bill payment, don't even consider giving them the time of day.
You've Got to Be Kidding
Remember when I said that almost all bad credit credit cards charge an annual fee? This is true. That does not mean, however, that you should be charged a 'processing' fee and a 'program' fee in addition to the annual fee.
Some of the less-than-ethical bad credit credit cards on the market charge annual fees of $79 or more, plus processing fees of $125 and program fees of $125. If they give you a credit limit of only $500, you've only got a few bucks left by the time the card arrives and the idea is to rebuild credit, not max out your only card before you even lay eyes on it.
Do yourself a favor. When you're shopping for bad credit credit cards, understand that you will be taking a hit or two (higher interest rates and an annual fee), but you should not, by any means, take the abuse some of these cards try to dish out.
For more tips on credit cards for people with bad credit, saving money and avoiding getting taken, check out CreditCardWhizKid.com, a website that specializes in providing credit card tips, advice and resources.
Anyone know of any bad credit, credit cards... ?
Does anyone out there know where I can get a credit card for people with bad credit. my credit score is pretty low, about 515 to be exact, and I would like to try and bring it up. I have started paying off stuff on my credit report but now I need something to help build my credit. Any ideas????
Answer
Orchard Bank gave me a credit card with a low limit of course and First Premier gave me one also, so the first answer is great, these two credit cards alone helped me rebuild my credit (it took a year) enough to buy a house three months ago. Also secure cards are just as good.
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