Bad Credit Cards Information and Help
Bad Credit Cards Information and Help
QuickLoanSource.com
Most of you get offers for credit cards, that sound like this, re-establish credit with pre-approved credit cards, regardless of credit history, some with low introductory rates and other perks.
When you recieve an offer for credit that requires no application, you should look at the following things:
Annual Percentage Rate: This is a measure of the cost of credit. The APR is stated as a yearly rate. It should be disclosed before you sign up for the account and also on your account statements. A “periodic rate” may also be mentioned. This rate is applied to your outstanding balance to calculate the charge for each billing cycle. Many cards allow the issuer to change the APR based on interest rates or other indexes. These plans are called “variable rate” programs. Government rate changes may raise or lower the finance charge on the account.
When you’re considering a variable rate pre-approved card the issuer needs to provide various information to disclose: that the rate may change; and how the rate is determined - which index is used and what additional amount, the “margin,” is added to determine the new rate. You should also receive information, before you become obligated on the account, about any limitations on how much and how often that the rate may change.
Free Period: Also called a “grace period,” a free period lets you avoid credit card finance charges by paying your balance in full before the due date.
If there is not a free period, it is very important to know which method is used to calculate the finance charge. This can make a difference in how much of a finance charge will be payed - even if the APR and the buying patterns do not change.
Most bad credit credit card companies charge annual membership or participation fees. These often range from $25-$50, sometimes up to $100; “gold” or “platinum” cards often charge up to $75 and sometimes up to several hundred dollars.
Credit cards gives many options. Some may include other costs. Some issuers charge a fee if the card is used to get a cash advance, make a late payment, or exceed a credit limit. Some charge a monthly fee whether or not you use the card. Make sure you are given all the info needed to make a wise choice.
QuickLoanSource.com
Filed under: Bad Credit Cards