Credit Cards For Adverse Credit History Applicants
by: Joseph Kenny
The simple fact of life today is that in many situations credit cards are vital. It is extremely difficult to rent a car for instance if you do not have access to a credit card in your own name. Also, shopping on line is not very easy at all if you do not have a credit card. While many websites will accept debit cards, if you are trying to book a hotel abroad or buy from any website based abroad, it can be next to impossible to find a payment method other than credit card. This is why more and more people are seeking to get credit cards, even when they have poor credit histories.
Guaranteed Acceptance Credit Cards
There are now a number of credit cards available that do not rely on a good credit history. The lenders are willing to provide these cards to absolutely everyone no matter what their credit rating may show. This is very good news for people who have bad credit ratings but still need access to a credit card. There are some important differences between these credit cards and regular cards however, so it is a good idea to be aware of the features that are different.
What’s the Catch?
The most obvious feature that people come across, and one that can surprise customers the most, is the existence of a subscription or set up fee for the card. This may be just as little as five pounds a month but can be substantially higher. There are also cards that charge an annual fee and these may prove to be better value if you plan on keeping the card for more than a few months. While customers have become accustomed to not having to pay for their credit cards, these fees are in many situations more than worth the expense given the convenience that the card will bring.
Don’t Abuse These Cards!
Another feature of these cards is that the interest rates and penalty charges for late payment are often very high. Interest rates can easily be as much as twenty five or even thirty per cent so you probably do not want to rack up too much debt on these cards. Also, if you miss payments there may be provisions for very high penalty fees and even for your interest rate to be increased. So if you are planning on getting a credit card targeted for those with bad credit, then make sure it is not something that is going to get out of hand and that you will be able to control your expenditure on it. Also, you should probably only take one out if it is for a specific necessary purpose, and not simply for occasional shopping.
About The Author:
Joseph Kenny writes http://www.CardGuide.co.uk, which offers some of the best credit cards in the UK.
April 2006
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