I can not even begin to tell you how many horror stories I've been told about innocent people falling into traps when looking for credit cards for bad credit. While there are many legitimate bad credit credit cards on the market, there are also some very unscrupulous sharks out there just waiting to make you their next victim.
Fortunately, I have some insider secrets that will keep you safe and sound and will help you find honest-to-goodness credit cards for bad credit.
Show Me The Plastic, I'll Show You The Money
It's a very common scam for a company to promise a bad credit credit card, as long as you send payment in first. Unless you're sending in the money as a security deposit for a secured credit card, there is never a reason to send in up-front funds for a credit card for bad credit.
If you refuse to pay an up-front fee and the person you are talking too gets rude, hostile or insured your credit is so bad that you have to pay a fee up front or you'll never get credit, do not take the bait.
Let that be a huge red flag that you are dealing with a scam operation and they want to rob you of your hard-earned money. Nine times out of ten, the consumer sends in the money and never sees the credit card they paid for.
Some Fees Are Legitimate
Now that we've gotten that out of the way, it's important to note that you may indeed have to pay an annual fee for a bad credit credit card. However, when paying an annual fee for credit cards for bad credit, the fee should be charged to the card and you should not have to pay for it up front.
Look Out For Misleading Credit Limits
Before accepting any bad credit credit card, make sure you know how much your credit limit is and what fees are involved. If the credit card company is going to charge you a $ 125 fee to get a credit card for bad credit and you only have a $ 200 credit limit, it's really not worth it. You would be better off getting a secured credit card for bad credit, approaching interest on your deposit and paying a lower annual fee.
Watch The Rates
If you're applying for credit cards for bad credit, do not expect to get a great interest rate. You will likely be paying interest in the double digits. That being said, do not let yourself get taken for a ride. If a bad credit credit card company tries charging you more than 19 or 20 percent interest, run in the other direction and find a better deal.
Do Your Homework
Most importantly of all, when shopping for credit cards for bad credit, do not rush into anything. Shop around, find the best deal and manage your bad credit credit card carefully once you get it. Occasionally, you'll be able to work your way out of the credit cards for bad credit and into a low-interest credit card that will better serve your needs.