With a low credit score and under perfect credit rating, obtaining a charge card with competitive features isn’t that easy. In the following paragraphs we check out the five major drawbacks that include a low credit score charge card.
1. High APR
With a low credit score charge card the eye minute rates are reasonably greater. Forget individuals % intro APRs- they rarely have a poor credit charge card. So, keep the charge card balances low, to prevent this high APR from burning an opening in your wallet.
2. Once processing fee
Some charge card companies charge a processing fee for those who have poor credit who make an application for charge card. This really is generally billed by charge card companies because of the credit report checks, other formalities and risk involved with supplying a charge card to poor credit people. If you are planning for any guaranteed poor credit charge card this charges could be waived, otherwise it needs to be compensated. The issue here’s that charge card companies demand upfront payment of processing fee. But, a sensible charge card consumer will discover a charge card company that charges the charges towards the charge card not demands money in advance.
3. High annual fee
Maintaining your poor credit charge card is certainly likely to be expensive when it comes to annual charges with respect to the credit history sometimes it can go in 100’s of dollars per year. Poor credit charge cards with annual charges offers are tough to find.
4. High overtime fee
Overtime with a low credit score charge card is seriously penalized. The charge card companies charge heavy overtime penalties on repayment default and therefore are extremely swift in reporting the default to credit score agencies with a low credit score charge card.
5. Lower credit limits
Since, the charge card companies face elevated risk in supplying charge card to poor credit people, and so the credit limits are lower. The loan limits could be elevated with guaranteed poor credit charge card and proper repayment of charge card balances.
These 5 factors related to poor credit charge cards increase the price of owning one. Evaluating various charge card offers, especially, if you have a low credit score can help you lower the eye and charges burden of a low credit score charge card.