In this article we are going to take another look at the bad credit plastic…or credit cards that have low, or no qualification threshold for approval. If you feel like this is an option you are considering…read on as we take a closer look and evaluate whether or not this is the proper path for you to pursue!
Here are the 3 simple things I share with all of my readers:
1) There is no such thing as “free”. If a credit card has no annual fee, or no application upfront cost, that does NOT mean it’s a good deal, or even “free” for that matter. If your credit is bad, and there is no cost for acquiring the card up front, trust me (and your own inner voice) there WILL be a cost later on.
2) Be wary of credit cards which charge monthly fees in ADDITION to the normal interest rates you would expect to pay. Quite simply, paying a higher than normal interest rate SHOULD be expected if your credit is bad. Paying abstract, hard to quantify monthly “fees” that you aren’t receiving a tangible benefit (or explanation for) are not.
3) A secured card CAN be a great way to re-establish your credit rating. Simply by making a small deposit (often times as little as $300) can be a great way of proving you are ready to handle financial responsibility once again. But be careful…while there are some great and reputable secured card offers out there, you can also get ripped off, like I point out in the first two points, if you aren’t paying attention.
The best piece of advice I can give you is this: Fix your credit! Simply invest in the simple and inexpensive tools and knowledge base that are available to you right now, to reclaim your piece of the American dream….rather than the nightmare so many of us have experienced instead. Good luck!