Bad credit credit cards are things you would never happen to apply for in your own name should your credit report result in bankruptcy. If they do happen to come up, they are going to make it more difficult for you in the future as well as further adding to your odds of getting approved.
What makes those cards not so Good
There are a lot of cards out there offering low asking rates for balances, low annual fees, instant approval and even the ability to cancel them if they do not prove themselves worthy of the card at the time they are due to be offered.
These are just some of the things that credit card companies make a fortune off of. Credit cards are used to pay for the fees that are incurred on the card and they are also used to raise your status and income after the introductory offer that comes with the new card.
The majority of people do not get to choose the cards that they get to choose from. There is a temptation to apply for too many offers, too many cards available and too many numbers selected for the first few offers.
Who gets the Lowest Rates?
There is no single lowest rate that everyone will get. However, credit card issuers find the lowest rates available from those who have more than one account and who will carry a balance in the bank.
All you need to do, is to select the cards that offer you the lowest rates. Some offer 0% APR, some offer 6 months, some offer 15 months, some offer 25 and even some offer 100% interest.
What else do banks and banks offer you?
Yes, the rest of us get just the sort of amazing low rate credit cards that they have been offered. Just choose your cards wisely. If necessary you can change your interest rate for example, often the two rates will be the same. It pays to shop around as much as you can for the best deal. Credit card companies are not going to change your interest rates if you have not made a few changes of your own. That will always cost you more than what you are paying to your bank.
What is the Penalty?
What is the penalty if you do not get the lowest rate from the cards that you currently carry?
Credit card companies routinely advertise their low rates at car dealerships to show their customers that they have low rates. If these cards are offered at selected banks then you should only be comparing their rates to say, the Visa or Master card banks which offer it. Most of the lowest rates on these cards are offered by many reputable banks. Try to find the cards offered by the companies that offer the lowest rates.
How do Credit Card Banks Calculate Rates?
Firstly, if you contact a bank or any of the credit card banks, you are asked. This is a requirement that most of the time only will you be allowed to be shown a credit card. Many credit cards companies around will put in place a system where you have to give them your full name and contact information. The information you give is used for all the purposes of the card and there is no data that is included. So as soon as you get your card it is sent to all of these banks. Banks will then put in place a calculator that tells them how much you will have to pay for back in interest and how that will be calculated.
No fees are charged for providing this service. There is no charge for incorrect information. Each bank will put a spending limit and the maximum they can charge you. You will have the option to always have a credit card to reserve it or it is the only way to use the card in most of the local authority banks because people pay the card fee on every purchase so having a card makes a lot of difference for the moment.
What will you do if you do not clear your limit?
No fees will be charged as far as having a credit card. However, if you cannot clear your credit card fee in the first place, then you may find that you need a debit card to make a purchase and so having a debit card may be a good idea for the moment. Having a debit card will give the bank a way to track charges you take out for taking out or withdrawing charge from the card.
Are There Penalty Charges If You Do Not Have the Highest Rate?
No. Credit card companies will charge you just about anything if you are not paying for your monthly payments on time for any reason. There are credit reporting agencies which are required to accept payments from you and so you don't necessarily get a charge if you don're in debt. If there were a charge free period you would know that you were paying out for that debt and that will make your credit card plan much more affordable for you.