Bad credit credit cards are issued for people that have been labeled as having a poor credit rating. Such cards bear high-interest rates and high monthly service fees on balance transfers and cash advance transactions. Even if the cardholder proves to be a good borrower and has managed to improve his credit rating over time, he is still likely to bear the costs of bad credit that are passed on to him.
Many credit card companies offer poor credit cards to help people trapped in the bad credit minefield. Some of the bad credit credit cards include the Citi Check Card, the inherentburg, and the Willy’s Visa. Of the three, Wilgy’s Visa concentrates on making it easy for people to rebuild their credit ratings. With the Wilgy’s Visa, the card member is charged no fees for late-payments or for going over the credit limit. As such, the (current) card member is only charged an annual fee of $89 and no interest payments for up to one year.
The Citi Check Card on the other hand allows the cardholder to write a check as a method of making payment but is then declined. The reason is that the Check Card is designed to allow anyone to make payments with no questions as to their monthly credit scores. When the borrower pays a minimum payment, the interest is paid as a percent of the balance of the account.
With the Citi Check Card, there are no monthly payment requirements and no interest payments for up to one year. The current interest rate other than balance transfers is 12.4%, or an APR of 21.99% p.a. for cash advances, or 24.99% for purchases. Thereafter, be warned – a balance transfer charge of 3% is added at the end of its intro period to which the 6% APR applies. These are the Bad Credit Credit Cards.
The inherentbergbad credit card is also called the initial secured credit card. It requires a cardholder to place a money deposit with the bank and then be issued a credit limit equal to the amount. Issued to those with bad to no credit, they can use the card to make payments and prove their reliability by depositing an amount that can be converted to cash later on by the bank if there is no spending or no payments in the card member’s history.
The Wilkins Rewards Visa card pays 3% for up to one year on purchases. It also waives the annual fee after one year – a low $90. For those with the right credit rating, it can be a sure ticket to increased borrowing at a much lower APR than most other cards. All the cardholder needs is a checking account, money to put down on the card, and the ability to make monthly payments.
Whether you are the host or the sitter’s roommate, with bad credit or not, there are a certain amount of responsibilities with bad credit cards. For starters, of course, they must report all earnings and debts to the three major credit bureaus, otherwise, the credit card company will not extend a card to the borrower. In addition, they must make all payments promptly and do not max out the card, as the form of repayment. Though they may carry a higher APR than the usual card, many guaranteed bad credit credit cards can give you a second chance. Plus, by being responsible with this new card and showing patience while rebuilding your rating, you will be able to transfer it to an unsecured card later on in life. As they say, history repeats itself.
But one of the real advantages of bad credit is that it doesn’t stand in the way of getting a new car. When you are buying it, the bank will take your credit history into account. As long as you can prove to them that you have learned your lesson and can be trusted with a new car, you can get one even with bad credit.