When you’re in the midst of bankruptcy, the chances are pretty low that you’ll be eligible for a credit card. There’s one exception. American Express credit cards are specifically for consumers who have bad credit. On average, poor credit continues to worsen for months or even years.
The problem is that credit cards tend to grow in importance over time. If just the first year doesn’t pay, an outstanding balance from your credit card can add up before you reach the debt-limit you owe.
Getting your first major credit card loan takes time. For newbies, it can be rewarding. Those cards that don’t offer free stuff like gas or travel insurance can be a bad idea.
Now, when your debt gets to the point where you can no longer afford the card, it’s worth taking the time to get a loan. As far as financing goes, by getting a regular credit card with a low interest rate and no sky-high credit limit, you’ll save money and make your life easier.
In today’s world of so much plastic, getting a loan is always going to be a good idea. But what about those offers?
Because these companies tend to be bargain hunters who will give you whatever you have to offer before you start speaking with anyone? They will never raise your interest rates, which means that at the very least, you should probably negotiate with them.
Basically, each time you want something from a credit card, they view it as a rebate, even though the rebate would be your own money anyway, leaving you to pay the fees or buy the product over again.
How does a good offer compare with one that doesn’t exist? Well, assuming you’re aware that a good deal is possible in credit cards. Of course, you’ll find every opportunity to rip apart this agreement until there’s nothing left intact, but every chance to tear apart it until no one’s left holding the bag.
So, if you take all of the above steps, and you’re saved from falling in the financial ever-linking hole, you should probably consider getting a secured credit card. This will greatly increase your exposure to people with bad credit and would cut down on the number of promises you hear from creditors.
It’s too bad that the credit cards companies are out there advertising their products. At the fastest pace-train of the fastest times, they can continue doing this for two or three years and make hundreds of millions of dollars annually as they charge.
So, make sure you’re not blinded by all the marketing blather of these companies, and check out the fine print. Many of the policies, promotions, and fees are spot-on, but you might not see them until after you’ve paid their annual fees.
All of these protections can make it very expensive for someone with bad credit to get a credit card, but these protections can make it worth it for you to actually use them. You pay the credit card companies interest on each balance, and regular payments on your high-debt credit card loan take years to accrue interest rates on.
So without taking out a loan to get a bad credit card, one last time, take a few months to make sure you pay your account bills on time.
How To Manage Credit Cards
If you have ever been in business and you want to manage your credit cards you need to know how to manage credit cards properly.
Before you start to make changes to your credit card policies or ways of managing your credit card you need to take time to not only find out how you work with your cards, but also go over your cards thoroughly, to find out:
Which account provider is to be used?
If the issuer is going to charge you a higher monthly interest rate than the level of your loans or credit cards you should be careful how you approach this problem: Some procedures for this, say requesting that your lender set an interest rate with a fixed threshold rather than a fixed rate of interest, could be abused by you.
If the card issuer has determined that a change in the finance charges or other charges on your account would lead to a reduction in your income for tax purposes, take a second look at what you can afford to pay off each month (at a rate that is fairly low). Then look at what charges you are using (as opposed to your credit cards, for instance) in order to obtain the charges.