Rates, Fees, Costs and Limitations on Bad Credit Cards

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Rates, Fees, Costs and Limitations on Bad Credit Cards

Rates, Fees, Costs and Limitations on Bad Credit Cards

By
Add to Favorites:

If you are trying to get yourself approved for bad credit cards, which are cards for people whose credit history and score are less than ideal, consider the rates, fees, costs, and limitations attached to such cards.

Most companies dealing with credit cards for bad credit will offer instant approval. Do you know why? Because there are so many costs and fees attached to the card. In terms of rates, subscribers should know that the APR, or annual percentage rate, for regular purchases is more or less 10% while cash advances have a whopping 20% APR. If an individual is unable to pay his payments for some time, his APR for regular purchases could double. The rates should not be ignored since they are quite substantial.

In terms of costs, once the credit card for people with bad credit is approved, an individual cannot expect to get his card on the mail for free. Regular cards maybe but not bad credit cards. Usually, he will need to shell out something for setting up the account, program fee, annual fee, and monthly service fee. This could total about $250, which are all included in your billing statement. So, there is no need to look for that amount. Just be prepared to pay for it the next month. For cash advances, a subscriber must pay up to $10 for every transaction on top of the very high APR. Late payments and exceeding the credit limit could be charged at least $29 each.

Getting bad credit cards does not equate to getting the maximum credit limit that most companies boast on their websites. The reality is, if your credit history is so colorful, you will likely end up with only $250 of credit limit in your account. The limit on the amount you could use out of that is about $70, with $25 for cash advance. Considering the cost of getting the card, it could take you about three months before you can actually use the card if you will not pay for the entire cost when it becomes due.

The $250 limit is not for everyone though. Others could get as high as $10,000, while some could get a couple of thousands.

If you have selected the additional card option, your fees, costs, and limitations will also change. Your fees and costs will increase while your credit limitations will go down since someone is sharing it with you.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading
Dashlane: Password Management and Shopping Ease in One Simple Product

Dashlane: Password Management and Shopping Ease in One Simple Product

By Angela Rose, Posted: May 3, 2017

Are you terrible at remembering passwords? Are you so terrible, in fact, that you often use the same one for multiple websites? If so, you’re not alone. Continue reading
SoFi Making Lending Social

SoFi Making Lending Social

By Dar Dowling, Posted: April 26, 2017

Since 2011 SoFi, a San Francisco based online lending company, took the lending industry by storm, when they became the first online lender giving people access to affordable student loan refinancing. Continue reading