There are a few things you need to look for when applying for a new credit card if you have bad or poor debt. You will want to avoid any credit cards that are aimed at people with high credit scores. You will want to avoid any card that has annual fees, cash advance fees, or late charges from a store. By following these tips, you should be able to get a new credit card quickly and easily.
Avoid applying for credit cards aimed at individuals with high credit rankings
When you are looking for a new credit card, always make sure you’re applying for one that suits your needs and your credit rating. You can check the requirements of many credit cards by using the Consumer Financial Protection Bureau’s database, and make sure the card you choose meets them. Don’t waste time applying for a card that has high requirements if you’re already in trouble with your credit.
Even if you have a high credit score, you may still be rejected for a particular card. The best way to find out why you were rejected is to review your credit report and application carefully. Then, wait until you’ve found a better option. Each year, the three major credit bureaus must report your credit report to the consumer. You can request this report online, over the phone, or by mail.
Avoid cash advance fees
The best way to avoid cash advance fees when applying for a major line of credit with bad debt is to choose a card that offers no cash advance fee. Some cards may charge a flat fee of $5 or $10 for a cash advance, while others charge the same APR for advances as for purchases. Be sure to check the terms and conditions carefully before applying for a card. Some card issuers also charge a higher interest rate for cash advances than for purchases.
While a cash advance may be an immediate fix if you’ve run out of cash, it comes with a number of disadvantages. First, cash advances are expensive and can rack up costly fees and interest charges immediately. If you use an ATM, you’ll be required to set up a PIN, and you’ll likely get a convenience check in the mail. Secondly, cash advances are often bundled with a card’s APR, meaning you’ll pay a higher interest rate than you would if you were making a regular purchase.
Avoid annual fees
When applying for a new credit card, you should be aware of all fees and penalties. Typical fees include the annual fee, foreign transaction fee, late payment fee, and cash advance fee. If you are worried about racking up a huge debt, you should avoid paying these fees. By doing so, you’ll avoid paying the high annual fees associated with credit cards. In some cases, annual fees may be waived with a little negotiation.
Many of the unsecured cards for people with bad credits come with high APRs and fees. Secured cards report to all three credit bureaus, which will help you rebuild your credit score quickly. In addition to helping you avoid costly annual fees, these cards can also help you improve your credit profile and qualify for better rates in the future. The best way to find a card that meets your needs and doesn’t charge high fees is to compare different credit cards before making a decision.
Avoid late fees on store credit cards
When choosing a store credit card, avoid overspending. While store credit cards may offer special promotions such as 0% interest on purchases for 24 to 48 months, people usually spend more than they intend. This impulse buying is often justified by the notion that the savings will offset the extra purchases. In the end, people find themselves in deeper debt than they planned. Avoid incurring late fees by being responsible when you use store credit cards.
In addition to avoiding late fees, store cards often send information about your payments to the major credit bureaus. Paying your balance in full every month will improve your credit history. While these cards often offer 0% introductory APRs, make sure to pay the balance in full each month to avoid late fees. Inactive accounts may be subject to deferred interest penalties and even charge retroactive interest. Avoid this situation by paying off your balances as soon as possible.