The credit card industry has credit cards for everyone including those with bad credit. These cards are considered bad credit cards because they are awarded to individuals who suffer from some of the lowest credit scores and cannot find any other card company willing to offer them the product. If you need a bad credit card because you find yourself in an unsightly credit score position you need to understand these types of cards. Many of the bad credit cards on the market are loaded with fees, which means you need to look for those cards with the lowest possible fees in order to regain your good credit score standing.
To help you understand what we are discussing when it comes to bad credit cards we have an example in First Premier Credit Cards. This credit card has an annual percentage rate of 23.9 percent for purchases and cash advances. There is a minimum interest charge of .50 cents. They then break down their card into a couple of different fees. There is a set up and maintenance fee applied to the card. A processing fee of $95 will be charged once when you receive the card. You also have an annual fee of $75 per year. After the first year the annual fee is charged on the card per month at $6.25 per month. The maintenance fee for closing the account is $36 annually. In other words if you still have a balance on the card but close it you will be charged $3 per month until the balance is paid off.
Transaction fees come next. Any cash advance is charged $5 or 3 percent depending on which is greater. There is also a foreign currency fee of 3 percent. Lastly any late payment or return item charge will be given a fee of $29. However if the balance on the card is more than $500 you should expect a late payment of $35.
With this example you can see that you are having to pay to have the credit card that is supposedly repairing your credit history and scores. If you use the credit card incorrectly you will lose a lot of income and possibly hurt your credit with the bad credit cards. Therefore, you need to look for a credit card company that offers bad credit cards but that does not have these fees. Some cards will have annual fees, but the maintenance fees and processing fees are not typical even with bad credit cards.
Many other credit card companies do have an option for bad credit cards. Also consider that the credit card program has undergone a recent change. Regulations are being enforced on credit card companies where certain fees such as the penalties have to be lower than a certain amount and there is a cap on the interest rate. By researching the credit cards on offer you should be able to find one with lower fees than the above example. Otherwise, you risk ending up with a credit card that charges fees that eat up your entire credit limit.
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