Credit card interest rates up
Credit card users will pay more for low rate balance transfer cards as lenders hike hidden interest rates.
What kind of credit card could I possibly get with having horrible credit?
So my credit score is something like 562. I am looking to get a credit card with something like 2000 dollar limit or lower that wont have unbelievable fees. Does something like this exist? I’ve applied for credit cards over the last year and have been denied each time. Yeah, my credit sucks. What can I do?
Answer
Every time you try to get a credit card, the inquiry reduces your rating.
It is usually only 1 or 2 points, but if you have bad credit it can reduce it up to 5 points.
You will not find a card with a $2,000 limit.
The best you can hope for is one with a $250 limit.
Problem with a limit that low.
Any time you use more than 30% of your available credit limit you are destroying your rating.
Ex: $250 limit – never use more than $75 at any time during the month on that card.
And, of course make sure you pay a credit card in full for top ratings.
Carrying balances on credit cards can destroy credit very easily.
There are some cards, but I consider them scams.
A certain bank has a card.
$250 limit
$95 annual fee
$75 proceesing fee
$10 monthly fee
$5 just to see your bill online
You end up with a card that is maxed out (which lowers credit) and you only have about $20 available to use.
They also have an inquiry fee to see if they can raise your limit.
Each time they do this (un announced about every 3 months) you get hit with a $35 inquiry fee.
This fee puts people over the limit –
They get that nice $40 over the limit fee.
And then the interest rate can go up to 45% – yes – they can go up that high.
In conclusion – stay away from these cards.
Go to your bank and get a secured loan.
You give them $500 or $1000, you invest in a cd- and you make a secured loan against that amount.
Paying back on time for at least a year will improve your credit.
Do not ever in life consider getting a credit card to carry balances.
This will only destroy your credit – and in turn your life.
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