Wednesday 19th of December 2018

Need a Credit Card?

It’s hard to get by these days without a credit card. If you’ve ever reserved a hotel room or rented a car, you have some idea of what a necessity a card is for many activities. Aside from restricting your options, not having a card also forces you to carry large amounts of cash, which is inconvenient and risky. So what do you do if you want the convenience of a card but have seriously damaged credit? Even those with ravaged financial reports can still qualify for certain cards if they’re willing to pay a little extra. In this post, we’ll talk about the borrowing options for the desperate.

Interest Rates & Fees

If you have blemished credit, the products available to you are likely to carry interest rates between 18%-22% or even higher. If you find a card with a 9.9% APR, you may snatch it up, thinking you have struck gold. However, you have to remember the fees that are likely to be associated with the card, including:

  • $100 program fee
  • $30 account set-up fee
  • $50 annual fee
  • $75 participation fee
  • $25 fee for limit increases

Where to Find Options for Poor Credit

The first place to look for offers is in your mailbox. Certain companies who specialize in poor-credit cards usually send offers to those who might qualify. If you’re not having any luck with this avenue, you might search online, make some calls, or talk to your local bank. Remember there are over 6,000 lenders in the United States, so you have a good chance of finding one that is willing to work with you and your specific situation. Two large lenders that specialize in options for those with credit challenges are HSBC Bank of Nevada and First Premier Bank.

Read the Fine Print

Once you find an option that fits what you need, make sure you read the terms of the card agreement carefully. Make sure you understand all of the fees associated with the card and exactly how much they are. Also understand the APR of your card, which must be disclosed in bold on the consumer agreement. Don’t just look at the regular APR; also pay attention to the default APR you would be charged as a penalty in the event of late payments.

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