As we make our way through the last week in September, consumers looking for secured credit cards, or general credit cards that are available for those with bad credit score, have seen that these rates have remained relatively unchanged recently despite the fact that certain costs like fees may have arisen as annual or even monthly fees will vary on these types of cards. However, consumers do still have the option of getting one of these secured credit cards, even with a bad credit score, and potentially could still find affordable bad credit repair options even if they get a rate on the higher end of the secured credit card rate spectrum.
Overall, these secured credit cards, or simple bad credit credit cards, may have an average rate of anywhere between 14% to 24%, depending not only on the card but the consumer, however as these secured credit cards are often used to either establish or repair a bad credit score, some officials often point out that with proper credit card use, interest rate charges may not be as much of a factor for consumers. Yet, bad credit borrowers do need to look out for any fees or requirements that may come on these cards, which will obviously necessitate that a cardholder look at various options, and compare rates and fees.
For bad credit borrowers who are new to the credit repair process or for consumers who have simply been in a position where they have never attempted to improve their credit standing, using one of these cards will require certain practices on the part of the cardholder, the first of which is finding credit card lenders that will report activity to the major credit bureaus so that a consumer will benefit from proper credit card use. While using a secured credit card is not the only factor that will impact a consumer’s credit score, this revolving line of credit and proper repayment practices can show lenders that a particular consumer can handle debt no matter if their credit score is low.
However, some consumers make the mistake of using these credit cards like a traditional, unsecured credit card, as they may carry a balance on certain purchases simple because they feel that a higher balance on the card, when eventually paid off, may be seen in a more positive light but a high credit card balance could work against the consumer in some situations, particularly when the amount of debt is high in comparison to their income or available lines of credit. Furthermore, the only way that a consumer can keep interest charges on these unsecured credit cards low, particularly when a high interest rate is given, is to pay off their charges in full each month.
This has required not only collateral on the part of some consumers, depending on their credit rating, but some consumers have simply set money aside and saved the amount they need to pay off their charges in full on a monthly basis, and this will obviously help keep interest rate charges low. As a reminder, financial advisers often mention that consumers need to also read the fine print to see what annual fees or monthly fees may arise, as this not only will cause costs to be much higher, but also comparing these cards, rates, and what each card requires of the user will be necessary here at the present time for those looking for the best card to help them in their bad credit position.