Debt Declaration – Bad Credit Help & advice, Debt Settlement Tips

Choosing a Bad-Credit Credit Card

June 3, 2010 by · Leave a Comment 

Bad-Credit credit card companies are where those with poor credit histories go to. It is not very surprising because almost anyone can get a car from these companies. The catch is the hidden costs.

credit cards

When choosing a bad-credit credit card, there are two main criteria to consider before anything else.
1. Do they report to the three main credit bureaus?
2. How high is the interest rate?

The answer to the first question has to be a “Yes”. Then when you move to the next one, the interest rate should be the lowest of its kind. Reporting to the bureaus has one major advantage. Every timely payment you make will go on the record. This is how you rebuild your credit status.

Once you make a list of companies that satisfy these two criteria, you can move on to prune the list using the following criteria.

1. Read the rules & regulations and pay attention to every detail. Restrictions and hidden charges can be heavily disguised in jargon. If you need help in deciphering this, contact a financial expert or a lawyer.

2. Understand the fee structure. There are annual fees that you will have to pay, but other than this there are late payment penalties, over the limit penalties and other penalties that will haunt you.

3. Find out if the interest rate is based on the Prime Rate. If this is so, bear in mind that the Prime Rate is liable to change abruptly.
Following these tips can help you get a safe and beneficial deal with a Bad-Credit credit card company.