People who have had credit problems can tell you how hard it can be to find unsecured bad credit credit cards. Sure, there are advertisements everywhere promising them - but half of them turn out to be scams or issue cards with ridiculously-low credit limits and ridiculously-high fees. Where are all of the good unsecured credit cards hiding? Before you apply for any unsecured bad credit credit cards, there are some things you need to know...
They Are Out There
The first thing you need to know is that there are indeed some good unsecured bad credit credit cards out there. You just need to know what to look for. If someone tells you that you must pay hundreds of dollars for an unsecured card just because your credit is tarnished, they're trying to take you for a ride. Understand this -- you will likely have to pay an annual fee and a higher interest rate, but you do not have to pay an arm and a leg to get unsecured credit.
How Much is Too Much?
As I said above, you are going to have to pay for an unsecured credit card. Even people with great credit have to pay for them. It's called finance charges. People with poor credit tend to pay more for credit cards than people with good credit. However, you should never pay more than you have to. So what's "reasonable" as far as credit card costs go?
Any credit card is going to charge you interest. That's just the way it goes. With bad credit, you're looking at anywhere from 10 percent interest to 30 percent interest depending on the terms of the card. You're also probably going to have to pay an annual fee. However, anything more than $50 or $60 annually is too much. And if they want to charge a processing fee and/or application fee on top of the annual fee, run in the other direction. Which brings me to my next point...
How Fees are Paid
While it's true that there are some good unsecured bad credit credit cards out there, there are also bad ones and then there are the ones that are completely fraudulent. These "companies" will request that you pay your application fee, processing fee and annual fee up front. You send them the money, then they'll process your credit card application. Nine times out of ten, no credit card ever arrives.
A legitimate credit card company will put any annual fees or processing fees on the card they issue you. They will not require money up front. And if the company says they need up-front money for an "application fee" let them know that the industry has become competitive enough that you can take your business elsewhere without having to pay any application fee at all, even if you do have bad credit.
Bad things happen to good people. Don't let the credit card companies make you feel as though you deserve abuse just because you've had financial problems in the past. By keeping the above things in mind you'll be able to find the unsecured bad credit credit cards that are right for you.
