When getting a credit card it is not enough that you know how much you'll have to pay for the charges. There actually are more things that you needed to know than that. When you fail to check on some of the also important factors besides the interest, then you may just realize in the end that you've been using the wrong credit card after all. Here are some other things you need to know and understand before applying and making your first swipe with your plastic:
When you are a person with a bad credit and would like to have a credit card, then be very careful with your choices. Make a wise research and comparison or you'll end up paying expensive interest. credit cards for bad credit applicants are most often than not expensive. It is the company's way to protect itself from risks especially with the poor history that you have.
You should first determine your purpose of wanting to have a credit card. Say, if you intend to use it for comfort like online shopping, car rentals or hotel reservations then the cheapest option you could have id a prepaid credit card. Nowadays, prepaid credit cards are a hit so try to shop for the best one. With the numerous companies offering such card, make sure that you make good comparison.
There are also credit cards that are intended for the purpose of improving one's credit, these are the unsecured and secured credit cards. This kind of card can be very tricky so make sure that you fully understand how it really works before opting for it. If you don't read on the terms, you will find yourself paying too much for a service or an item.
Ask yourself these following questions before you apply for a bad credit card:
Is the card a secured or unsecured card?
- With a secured card, you ought to deposit a certain amount in the bank before you can get and use the card which will be used as a security for your credit line while with an unsecured card, you are not asked to deposit anything but with a very low credit limit that could be around $250-$500. The good thing about secured cards is that you are offered a higher credit line but you have to source out the money for your security deposit.
Are the terms clear and fair?
- This is very important of course. If there is a part of the policy which is not clear to you then better have it cleared before you use your card.
What fees shall I be paying?
- Different banks collect different fees with different amounts. Ask the bank what the fees are for and how are they applied so you have a clear understanding of all the entries you have in your credit card bill.