When it comes to bad credit, there’s no specific number. It can vary among lenders, but usually, it’s a score 500 and below. If you have this, then you’ll find yourself having a hard time getting a good deal or even applying for most types of loans. After all, it suggests you don’t have the capacity to pay.
If you want to improve your situation, you need to repair your score with your credit history. It is basically a list of all your borrowing and repayments. To do this, it may be ideal to get a credit card designed for bad credit. But how much is it going to be? Here’s the potential Cost of bad credit credit cards:
1. Interest
Interest refers to the percentage you need to pay in addition to the principal balance. It is expressed as APR or annual percentage rate. Lenders can have different basis for this one, which explains why interest varies. As a borrower, you need to pick the lowest, but if you have bad credit, it is usually higher than those who are of good credit standing. Nevertheless, it’s important your interest doesn’t cost twice as high as the prevailing percentage.
Note, however, that secured credit cards, or those that require cash deposits, can have no interest.
2. Annual Fees
Another cost of bad credit credit cards is the annual fee. Experts are divided on this one. Some believe you should not pay them while others believe it is standard. Some may waive the first year for you. Again, you don’t want to be several times costlier than the norm in the industry.
3. Application Fee
As its name suggests, this refers to the amount you pay upon your application. Paying this doesn’t guarantee the lender will approve your application. Many deem this unnecessary especially since a lot of lenders don’t charge you with it.
4. Late Fees
Even if you’re using a bad credit credit card, the lender may still charge you with late fees, which is usually a fixed amount. Either way, you don’t want to be late as this can hurt your credit score further. It also ruins your chances of having better terms with the lender.
Compare the Cost of bad credit credit cards
Here’s some good news for you: having bad credit doesn’t have to mean ultimate financial ruin. You can still change the tide and make it favorable to you. But you need to find the right credit card.
Checking out every possible lender can take a lot of time and energy. Furthermore, it only delays your chances of repairing your credit history. To save yourself the hassle, use comparison websites such as http://creditcardforbad.credit/.
This website can curate all the types of credit cards for bad credit across different lenders. You will have a basic idea on its costs based on fees and interest, as well as benefits, if there are any, such as rewards. You can sort the list based on many factors like interest as well as apply directly online.
What is the Cost of bad credit credit cards. Find out the ins and outs of such deals at www.creditcardforbad.credit.
