If You Have Had Bad Credit In The Past, It Might Seem Hard To Get A Credit Card That Is Not More Expensive Than It Is Worth

If you have had bad credit in the past, it might seem hard to get a credit card that is not more expensive than it is worth.

These cards are very expensive, and if this is your only option you should not get a credit card. If you have had bad credit in the past or not, it is important that you avoid sub- prime borrower cards. If you want some advice on how to avoid sub- prime borrower cards then this guide can help you. Sub- prime lender is not a new type of lending, but it is growing in popularity. What is sub- prime lending? This type of lending is offered to people who have poor credit or who do not meet the requirements of other lenders. What are the costs?

Although this might seem like a good thing, often the drawbacks and costs of such lending far outweigh the benefits. Although it might seem strange that a lender would want to take a risk giving a credit card to someone is a risk in terms of being able to pay the money back, they can actually make a lot of money from it. You might get a 500 credit limit, but 200 of that could be fees and the interest could be 30% or more. By offering poor credit consumers credit cards that they could not get anywhere else, but with massively high interest payments and fees, they can make money even if some people are unable to pay. Who gets targeted? If you are offered one of these cards you should definitely decline.

Mostly people with poor credit ratings get targeted for such cards, although other groups of people can end up being offered these cards, such as the self- employed. Even if your credit is bad you should not have to pay such an amount for a card. Alternatives. If there are no other options open to you, then it is likely that having a credit card would be a bad idea for you anyway. If you do want a card but have poor credit, then there are options open to you. If you are unable to get a regular credit card but you need something to repair your credit history, then look at getting a secured card. If you shop around online you should be able to find a good deal that has reasonable rates and good levels of service.

These cards require you to secure the credit by putting up something as collateral. Seek advice. Although these cards do not offer you much in the way of spending power, they are a lot cheaper than sub- prime borrower cards. If you are having problems finding a credit card that does not have extremely high fees and want some help, then consult an independent financial advisor for some advice. If you look around and avoid the extortionate sub- prime lenders, then you will end up with a much better credit card deal. They will be able to tell you honestly what your options are, and which products to avoid.