How to avoid the High Fees ...

Many people who have had problem credit in the past often experience a lot of rejection, they may be turned down for a mortgage, they may have higher car loan rates or they may be charged more money for insurance. Many people are looking for ways to get rebuild credit, and one of the best answers is to get a credit card that will allow you to have bad credit and still get a card to help you build credit. However one piece of advice here is that you remember to read the disclosures. Most people shoot themselves in the foot with all the high fees usually associated with these “bad credit” credit cards.

You may find that there are very few services that will provide a program that gives credit cards to those who have less than perfect credit. Believe it or not all of these may even look the same in most cases, they all have the premise of helping you to build your credit and they all promise to report your favorable information to the credit reporting agencies on a regular basis. They will all provide you with a major credit card that usually has the Visa or the MasterCard logo so that you can make regular everyday purchases at places that accept these cards. These cards are very important so that you build the credit needed to be able to buy your dream home or to roll away from the dealership in the car of your fantasies. However before you try any of these credit card programs for people with bad credit, you will need to read the information listed in the fine print of your credit contract. You need to pay attention to the cards that ask you to pay set-up fees, monthly fees and really high fees yearly. In this examination we will look at different types of cards that are available.

Card 1: With this card you may notice that you do get a really low rate of interest and the card is unsecured, however when you look at the fine print you will find that there is a one-fee for set up that is $29 and a fee for the card which is $99, which means that as of now you are already paying out $128 before you even get the card. Then you may also find that there is an annual fee which can be approximately $48 which brings a total of $176 dollars, and then you will also need to pay an additional monthly charge of $8 for maintenance which means that you are paying $96 more. By the time you are done you have already put in $272 in fees just for the first year and you have not even factored in the interest charges you will get for the year.  However this is what happens too many who find that they have badly credit and can’t get a regular credit card.

Card 2: This card will charge you the highest of interest rates for your card which again is unsecured, however the set up fee is just $29, it will have an additional fee that is approximately $7 a month which brings your total to $113. However those fees are clearly lower than the first card, but you missed something because just below these charges you will find that the card will also find that this card comes complete with a $199 yearly charge for the maintenance. This is really a lot of money for a credit card that is going to charge you an arm and a leg for interest.

Card 3: You will find that this card comes both unsecured and secured and it is pretty much based on how your credit rating is doing. The interest charges for this card are average to those of regular cards and in the set-fee column you have a fee that is $49. This card comes with an annual fee that is $35 if your card is secured and $79 unsecured. Then you have a maintenance fee that is just a few dollars. This means that you are paying more than half less than you would be with any of the other cards and less interest than one of the cards. Looking through the fine print means that you could end up with a card like this that can actually help you come out of this situation with a better credit rating and a lot less money spent on fees.

There are a lot of very different cards to choose from, however don’t let just any old company charge you outrageous fees that you clearly can’t afford. It will hurt when you go into default and eventually lower your credit score so that you are back in the grips of bad credit again. Taking a card that has lower credit means that you will build credit and have more options when making purchases. Remember when choosing one of these programs to always read the fine print, so that your “bad credit” credit card doesn’t change into a bad credit nightmare.