Bad Credit Charge Card – A Few Cons
It seems that for some years now more people confront with bad re-payments for their old debts and in this way their credit report has to suffer. This will turn them pretty soon in people with bad credit, which is not necessarily such an awful thing, but it makes getting new loans more difficult.
This is why when facing this situation you can try to find other sources, one of them being the bad credit charge card offered by many small banking institutions. But nothing comes so easily without having to pay a certain price. Read on and find out what that price is in the bad credit charge card.
* These cards will definitely come with a higher interest rate than the typical credit cards. This is the way these small banks consider to protect themselves against people with bad credits. It doesn’t mean that you will be seen as some thief who once having the money, he disappears. Unfortunately there are people as bank customers who create real problems and as a result banks should take their own measures of precaution.
But, if you will prove that you are a good payer each month, then the interest rates shouldn’t concern you that bad. Not paying in due time and leaving balances unsolved from one month to another will make the image of your credit report even worse.
* Apart from the interest rate, you might as well be required to open a saving account as collateral for your loan. Usually the amount in the saving account can range from $500 to $1,000. After that a part of the saving account balance would become the available amount on the credit card. Not having this amount when you apply for the bad credit charge card, it can constitute a problem for you.
* Another drawback of the bad credit charge card can be represented by the long lasting process of applying that many of such banks resort to. You can be submitted to all sorts of checking, you can confront with some protective measures that bank feels like taking to be their own ‘safety net’. You should not be concerned as all these are the result of many former customers who have eventually turned into bad re-payers with the bank never recuperating the loans back.
This is in fact the price that you must pay when applying for bad credit charge card and this thing you have to bear in mind when choosing this option. But reviewing once again these drawbacks, they can be understandable from the bank perspective.
And besides, if you k now yourself as being a good and on time payer, they shouldn’t be that much of a concern for you. Just be responsible with the cards that you have and make your due payments as in this way you can also fix your bad credit report over time.