"Not for nothing is their motto TGIF - 'Thank God It's Friday.' They live for the weekends, when they can go do what they really want to do."Richard Nelson Bolles
|
| |
Business Credit Cards Can Make You Money
Small business owners, more than any other credit card users, are in the best position to profit from their use of credit cards. Profit from credit cards? The idea may seem foreign, if not preposterous. However, the truth of the matter is simple: if you ...
Discover Free Credit Cards
There are a great number of people today that are looking into getting a credit card. Some of you may have heard of free credit cards and are very interested in getting one. The idea of free credit cards does sound enticing. If you would like to know ...
Everything You Always Wanted to Know about Airline and Air Miles Credit Cards
Before applying for an airline credit card, you need to ask yourself two questions: 1. What benefits are available from the largest airline in my area? 2. Which airline credit card would let me reap the greatest benefits quickly? A credit card sponsored ...
|
|
|
| |
Individuals with problematic credit histories often suffer unfairly from high mortgage, insurance, and car loan rates. On top of that, they have difficulty getting approved for credit cards. The whole situation can get extremely frustrating. Frequently, I get emails from consumers wondering what they can do to rebuild their credit. The first thing I tell them is to get a credit card designed for people with bad credit. The second thing I tell them is written in bold: READ THE FINE PRINT.
There are only a limited number of credit cards for individuals with bad credit. At first glance, many look the same. They all help build and rebuild your credit by reporting to the major credit bureaus on a monthly basis. They all provide you with the Visa or Mastercard you need to make many purchases. And they are all necessary evils that can save you thousands of dollars in mortgage and car loan rates in the future. However, you must read the fine print before applying for one of these credit cards, as they often charge high yearly fees, set-up fees, and even monthly fees. Here, I will examine a few examples of charges current “bad credit” credit cards bury in the fine print. Of the three major cards I will examine, only one stands out as consumer-friendly.
“Bad Credit” Credit Card #1: This credit card charges a very low interest rate for an unsecured credit card. However, your first fine print glimpse reveals that there is a one time setup fee of $29. Not too bad. So far, since the next charge is a one time fee of $95. So far, we're up to $124 in expenses. That's got to be it, right? No. Add in another $48 for the annual fee and $6 per month in account maintenance fees. That's brings the cost of your new credit card to $244 the first year, and $120 each additional year. This is no small change, and a card such as this should be considered only if you cannot be accepted for a better unsecured credit card for bad credit.
“Bad Credit” Credit Card #2: This credit card charges a very high interest rate for an unsecured credit card. This can't be good. But the setup fee is only $29. Maybe this card isn't so bad. There is that pesky monthly maintenance fee of $6.50 per month which brings the cost of this unsecured credit card to $107. Maybe we've found a bargain. Not quite. The annual fee is a whopping $150. Yes, $150 every year. That not only brings the initial cost up to $257, but you will also pay $228 a year just to maintain the credit card. There has to be a better offer.
“Bad Credit” Credit Card #3: This credit card is available as both a secured and unsecured credit card, based on the issuer's review of your credit history. The interest rate is average, even competitive. Now, the fine print reveals that there is a one time setup fee. However, based on your credit, this fee can be as low as $0 or as high as $49. So far so good, especially if your credit is not that bad. But, there must be a huge annual fee. Not exactly. The annual fee for a secured credit card is only $35, and for an unsecured credit card, this fee can be as low as $39 or up to $79. So far, the cost of this card ranges from $35 to $128. Now its time for the monthly maintance fee. This one has to be huge. Or not. Its $0. That means the most you could possible be charged to obtain this credit card is $128, about half of what competing cards are charging.
Clearly, there are substantial difference between “bad credit” credit cards. Of the three offers we have examined, only one doesn't take you to the cleaners. In fact, “bad credit” credit card #3 provides great value. All positive changes to your credit history and credit score will translate into lower loan rates, lower credit card interest rates, lower insurance rates, and ultimately, thousands of dollars in savings. The path to rebuilding credit has its costs, but in the long term, rebuilding your credit with a “bad credit” credit card is the fastest and most cost-efficient way to correct the often unfortunate circumstances that have damaged your credit in the first place.
©2006 Credit Card Depot Inc.
About The Author
Jeff Weber is President & CEO of Credit Card Depot Inc., an online information provider that specializes in the credit card industry. For information on "bad credit" credit cards, visit http://www.credit-card-depot.com/bad-credit-applications.htm.
|
|
|
|
|
|
 Stores may see disappointing Black Friday sales - KMOV
NEW YORK (AP) -- After pushing steep discounts throughout November that are usually reserved for the day after Thanksgiving, retailers from Kohl's to Toys "R" Us are offering even bigger cuts and promotions for Black Friday in a frantic bid to pull ...
CreditCards.com: Weekly Credit Card Rate Report - Earthtimes
AUSTIN, Texas - (Business Wire) Annual percentage rates for new credit card offers rose this week, according to the CreditCards.com Weekly Credit Card Rate Report. However, that move was due to a change in the composition of cards offered rather than ...
Hit-and-run locker room theft ring busted, say feds - Seattle Times
Police have broken up a gang of hit-and-run gym thieves believed responsible for using stolen credit cards to buy computers and other electronic equipment which was sold for millions of dollars on eBay, according to federal charges. Officers assigned ...
International Challenges in PCI Security - Computerworld Australia
In a country that's seen many regulatory compliance challenges this decade, the headaches of PCI security tend to be analyzed from a largely American perspective. In the process, companies tend to forget that PCI compliance has been a recipe for ...
Salvation Army testing credit cards at red kettles - KUSA-TV
COLORADO SPRINGS (AP) - It's a true season of change -- the Salvation Army is experimenting with a plastic alternative for folks who don't have cash to throw in a holiday red kettle. This season, five bell-ringers in El Paso County will be the first ...
|
