The Credit Card Companies Greet Him With The Following: Very High APR

Category: Finance, Credit.

Having a bad credit and getting good credit card offers simply doesn' t happen.

When a person with bad credit goes out to get a credit card he finds the situation very uncomfortable. Credit card companies secure their interests and rip a bad credit person with quite unreasonable charges. The credit card companies greet him with the following: Very high APR. The APR's can be lowered if a good collateral or bank account is linked to the credit card to make it'secure' . Bad credit usually attracts high APR on credit cards. Poor credit with an inability to provide sufficient collateral makes the credit card an' unsecured' one and this results in high APRs and low credit limits. It is rare to find a bad credit credit card with 0 Annual fees.

Huge Annual Fees. The bad credit credit cards, are quite risky investments for credit card companies. Call it taking advantage of this situation or whatever, credit card companies slap heavy annual fees to provide a bad credit credit card. On the contrary people with bad credit are pretty much desperate to find a credit card, which can help them improve their credit history. This fees can start from 70$ and can climb into hundreds of dollars per annum, depending on how worse the credit situation is of an applicant. Yes, there are few credit card companies who want to exploit a bad credit people to the maximum.

Unreasonable Advance Fees. They want fees just to look at your application, and it has to be paid in advance. Whether you have to pay in advance, or the credit card company charges it after issuing the credit card a bad credit has to shell out this money either ways. Some, don' t guarantee a bad credit credit card even if you pay them this unreasonable amount. There is a very little choice for those with poor credit, when it comes to getting a credit card. However, a good comparison of all the bad credit offers out there and shopping around, contacting various credit card agents can really help a bad credit person from being slaughtered.

These fees and high interest rates are an inevitable reality, and must be endured.