Bad Credit Cards are getting more and more popular because the credit crunch has caused card users to resort to different ways of getting money. Getting a personal loan or any loan in general is very hard with lenders demanding better credit scores to get a low interest rate. The value of most homes has dropped so getting a home equity line of credit is difficult as well. A quick and easy way to get access to more money is a bad credit credit card.
Most people looking for credit cards want a card with no annual fee. When looking at bad credit credit cards the annual fee is actually not that important. What is important is your interest rate. Most bad credit borrowers get a very high interest rate on their credit card because of their poor credit score. If the annual fee on a credit card is $39 but you get an interest rate of 11.99% that is much better than a no annual fee card with an interest rate of 21.79%.
If you pay off your credit card each and every money obviously the no annual fee is a better card but if you are searching for bad credit credit cards it is highly likely that you do not pay your card off every month. The amount of money you pay in interest is usually much larger than any annual fee so make sure and check the interest rate first and annual fee second. Also make sure that you check the interest rate after the introductory period.
Many credit card companies offer a very low interest rate, sometimes 0%, for the first six to twelve months of your card. Realize that this rate does not last and it will jump drastically after that period ends. The jump you see will be the interest rate you are likely to have for quite some time with that card. Don’t let the introductory fee fool you into getting a credit card with a high overall interest rate.
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