Common features of bad credit history credit cards

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Building Credit History » Common features of bad credit history credit cards

Common features of bad credit history credit cards


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
Bad credit history credit cards are offered by card issuers and lenders who are looking to take a bigger risk for bigger gains. Since the cards are offered to customers with low creditworthiness the terms are severe. Bad credit history credit cards are notorious for their hidden charges, high fees and exorbitant interest rates that the card holders should be careful about. Here are some of the features on offer for a bad credit history credit card that could benefit you. Departmental store or gas station credit cards These cards report credit to each of the 3 bureaus and hence they could become the last resort to rebuild credit history especially if no reputable credit card issuer is approving cards for you. However, the fees on the cards could add to your debt and any outstanding debt would meet with excessive interest. It is important not to make new expenses on these cards as long as you don’t pay off the old. It is also important to keep the outstanding balance at less than 20% of the credit limit at all times. Credit tracking Some bad credit history credit cards offer credit tracking facility which will allow you to constantly monitor your credit score and ensure that it is growing in the right direction. Not only will it motivate card holders with bad credit, it will also immediately show the effect of positive spending and payment habits on the credit score. There are other tools too like minimum monthly payment limits and calculators which will help you figure out the timelines by which you will be free of debt. Refundable security deposits Bad credit history credit cards also come with the option of refundable security deposits. The biggest advantage of such a deposit is that it lowers the risk for the card issuer and therefore allows you to get more favorable terms like lower interest rate and a higher credit limit to the tune of $3000. Having a credit limit could allow you improve your credit score, especially if you have the discipline to keep your outstanding balance low at all times. Moreover, consistent payments on time will qualify you for future increases in the credit line without actually adding to the security deposit, which is a step in the positive direction. Fees waiver In order to attract credit card customers some card issuers waive off excess fees such as application fees, processing fees, annual fees etc. which offers a great relief and saving in excess of $100 in some cases for the card holders. Tools to manage finances Bad credit history credit cards could help you repay your debt and build your credit score. The tools include email messages and alerts that will constantly remind you of upcoming payment dates and minimum monthly payments. Besides, you can contact 24 X 7, customer service to understand more about the repayment plans and how you can get rid of the debt at the earliest. Lowering your debt by talking to experienced customer service representatives will help you build credit scores over a period of time.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!