Avoiding High Fee Charges on Bad Credit Credit Card Applications

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How You Can Avoid High Fees on Bad Credit Credit Cards
By http://LendingAndCredit.net

Figure 1: Avoid Paying High Fees for Bad Credit Credit Cards
It's not uncommon to find out that those who have poor credit ratings pay lots more in interest
charges whenever they apply for credit. Examples include mortgages, auto loans and insurance.
To make it even worse, the same situation applies when they apply for credit cards. These can
actually frustrate you if you've been there before. So what can you do if you have bad credit and
need a credit card and still be able to avoid those high fees? Read on then...

There are credit cards that are specifically designed for people who have bad credit but these
cards are limited in their availability. We all know the importance of using credit cards to make
your purchases. The primary use of credit cards is that they will help rebuild your credit scoring
which in turn will help you get loan rates lowered. Other forms of credit such as mortgages also
do come at lowered interest rates if you have a good credit score.

Although the intention of banks are good in that they give you the card to help you rebuild your
credit, you need to read the fine print thoroughly as there are a lot fees and charges that are
buried in the fine print. Yearly fees as well as monthly fees and set-up costs can be very high.

There are three types of credit cards that are designed to be used to rebuild your credit. We will
examine three of these cards in this presentation.

Bad Credit Credit Card Type 1: The interest charges on this type of unsecured credit card for
rebuilding your credit are very low at first glance. When you get the card and check the fine print,
you will find out that there is $29 fee. This is meant to be the setup fee which is also a one-time
fee. Not bad. You're also charged another $95 for which is also a one-time fee. So far the total
cost of your card stands at $124. Are these all the cost you have to bear? You wish!

There's an annual fee of $48 plus a $6 monthly fee. The monthly fee is maintaining the account
each and every month. So far the total cost of the card for the first year is $244. Additionally, each
year, you'd pay $120 that you keep you using the card. As you can this charge is rather on the
high side. Should you go for it? Well only if you do not have any other options.

Bad Credit Credit Card Type 2: The interest rate on this card can be high considering that it is an
unsecured card. The only good news is that the set-up fee, compared to first credit card we
reviewed, is $29, plus that little $6.50 for the monthly maintenance fee. Putting all these together
gives a $107 bill for the first year. If you thought this type of card is a low cost alternative for your
bad credit situation, think again! There is $150 annual fee charge you'll have to pay too.
Henceforth the initial cost comes to $257 for the first year. The you will have to pay another $228
every other year that you keep the card. Obviously there has to be a better offer somewhere.

Bad Credit Credit Card Type 3: There one good thing about this card. And that is that you can get
it as an unsecured card or a secured card. But that decision depends on the issuer of the card.
They will review your credit history and then decide. When you read the fine print on this card,
you'll discover that the fine print quotes a one-time set up fee. This setup fee can be $0 or $49
depending on your credit score.

As you might have come to expect, there could be a high annual fee. But with this card, it's not so
high. The yearly fee for the secured card is $35. You can get the unsecured card for anywhere
from $39 to $79 depending on your credit. When we add up all these fees together, we get
anywhere from $35 to $128 for getting this card. There are also no monthly fees which is really
good. The entire cost of this card essentially is half that of the other two bad credit credit cards.

So you should surely go for the bad credit credit card #3 for rebuilding your credit. To find out
more how to get a bad credit credit card type such as the one we have discussed above head
over to our blog at: