5 Takeaways That I Learned About Loans
If you are one of the millions of people with a bad credit, it is easy to feel like accepting whatever terms and conditions a credit card issuer gives you. People with a bad or poor credit may have limited options because of their credit standing but they can still get financial help from alternative sources. With the help of a credit card, you can establish a good credit history by paying on time without having to pay exorbitant credit card fees. Just imagine getting approved for a credit card, responsibly using it, and paying your dues on time, but in the end you just realize that all your good efforts are not being reported to the credit bureaus, thus working with a credit card company reporting to credit bureaus such as TransUnion, Experian, and Equifax is important.
Secured credit cards are preferred that prepaid debit cards for individuals who want to rebuild their credit. A secured credit card will require a cash deposit, working like a regular credit card, wherein you can borrow money, pay on time, and assured that good payment behaviors are reported to credit bureaus to help rebuild your credit history. There are credit card issuers taking advantage of people with poor or bad credit by charging them with excessive fees. When it comes to the most common fees on credit cards for poor credit, they include an annual fee, balance transfer fee, and late fees. The acceptable annual fee for credit cards for bad credit is $30, and you need to consider it a red flag for any amount more than this. When transferring a balance from one credit card to another, the balance transfer fee should only be 3% to 5% of the transferred amount. For individuals with a good credit, balance transfer fees are usually not charged. When it comes to late fees, this can take a hit, but the maximum late fee is $27 for the first offense, and $38 for the succeeding for missing a due date.
It is worth it choosing a credit card offering tools to help you in monitoring your credit using debt-payment calculators or free financial education programs for improving your overall financial health. What are the best credit card management strategies that can help you financially? It is best to find a secured credit card that can help you graduate to an unsecured card as long as you do good in your payment performance for at least a year. You can also find an unsecured credit card without annual fee. For people with a bad credit, they usually want to eliminate plastic cards, but this is the fastest way to help rebuild a credit, so this is your best option if you have a bad credit.