Copyright (c) 2010 Liz Roberts
Planning to apply for a bad credit credit card? Finding the right one with reasonable fees and conditions is possible if you will just do an extensive research. Comparing all your options is also recommended. Below are some helpful tips on how you can shop around for a credit card for bad credit that can surely help you repair and improve your bad credit history.
The Hunt for the Right Bad Credit Credit Card
Search the web and you can find a lot of credit card offers for people with poor credit scores. However, most of these cards come with high interest, high fees, and high deposits. Although Issuers of sub-prime cards understandably charge higher rates and fees than standard cards, you should not settle with a credit card that will put you at greater risk of having bad credit. It is a relief to know that the New Credit Card Law imposes a restriction on bad credit credit card fees. For instance, upfront fees cannot exceed more than 25% of the card holder’s credit limit. Look out for credit cards for bad credit that do not require you to pay annual fees. Before signing up, see to it that the Issuer won’t be making up for this loss by charging higher interest. By shopping around, you can find cards for bad credit that do not carry expensive rates or fees.
Choose a Card that Matches Your Personal Needs
You can use a comparison tool from a reliable credit card review website to match different credit card offers in the market. Match up the interest rates, fees, credit limit, etc. Aside from the costs, you should carefully consider the terms and conditions.
Which of these credit cards is the most suitable one for your type of needs? Remember that your primarily goal must be to use your credit card to rebuild your credit history and improve your credit score. Will your chosen Issuer report every payment you will make to the major credit bureaus (Equifax, Experian, TransUnion)? Does the Card offer an instant upgrade after you have shown consistent payment for a certain time period?
How much security deposit are you willing to submit? The required amount of security deposit can range anywhere from $300 to $500 or higher, depending on the issuer. You should prepare to submit a much higher deposit if you are in need of a higher credit line.
If you are on a limited budget, it is a good idea to start with a lower credit line. Thus, you won’t have to make a large deposit and you can put exercise more control over your spending. Remember, qualifying for a standard credit card that requires only good or excellent credit rating is still the best way to enjoy a low interest rate, lower fees, higher credit limit plus the opportunity to earn rewards and special privileges.
Once you have your credit card for bad credit, make sure that you only use it for important purchases and always pay your bills on time. Avoid applying for more than one credit card so you can maintain your focus on improving your credit rating. More importantly, avoid the high interest rates by paying off your full balance on or before your due date.
Article Source: http://www.articlesbase.com/finance-articles/how-to-get-the-best-credit-card-for-bad-credit-2485370.html
About the Author
Since 1989, New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing. Join our mailing list for Free Tips on Rebuilding and Repairing Credit. Click here for the list of bad credit credit cards that suit your needs.