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Credit Cards: The Good and the Bad

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Do you have bad credit? It can be tough to get credit cards when you have a poor credit rating. In fact, its easier to wind up with a bad credit card than with a good credit card. Because you have fewer options, predatory lenders will try to trap you into card agreements that saddle you with high fees, high interest, and a spiraling amount of debt that will pull you farther into financial trouble. These are the top signs that certain credit cards are predatory:
* Interest rates that are high out of all proportion to the credit risk you pose. When you have poor credit, youll pay higher interest no matter what, but predatory credit card rates are well beyond anything reasonable. Do an online search to determine what legitimate lenders charge for credit cards for bad credit, and refuse any offers that are significantly above that level.
* Weekly or monthly fees. Legitimate credit cards never charge weekly or monthly fees, and only rarely charge annual fees. If a credit card offer includes a weekly or monthly fee, theres an excellent chance that it also comes with a very low line of credit, meaning that the fees quickly take up your entire line of credit. You barely get to use your card before youve reached your limit, and the lender gets to extract money from you for the privilege of not using its card.
* Loans or applications that require fees up front. Charging a fee before a loan is actualized is illegal. If a company asks you to shell out any money at all before your loan or credit line is approved (even if they say you are pre approved), refuse the offer and report the company to the relevant authorities.
* Unethical billing practices. Predatory credit card companies sometimes try tricks like mailing you a bill on the bills due date, meaning that by the time you get the bill, your account is already past due. Close your account for your own safety, and start sending in payments on your own, without waiting for the bill to arrive in the mail.
These are only a few of the signs that a credit card lender is predatory. Do your research well and thoroughly before you start looking for credit cards that will accept borrowers with bad credit. You are in a sensitive financial position, and you need credit cards that will help you to improve it, not dig you deeper into debt.

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