Bad Credit Credit Cards with No Fees
Are Bad Credit Credit Cards with No Fees Useful?
Two critical factors that consumers consider before applying for a credit are ongoing Annual Percentage rate (APR) and the annual fees. If you have a low credit score, you might be looking for bad credit credit cards with no fees to boost your credit score.
Many credit card companies offer credit cards with a no fee period for a year or more, useful for consumers with bad credit score looking to improve their current standing. Bad credit credit cards with no fees are a great option for these people because it allows them access to money without paying steep annual fees.
Features of Bad Credit Credit Cards with No Fees
Credit scores generally range between 300s to mid-800s. A bad credit score falls somewhere between 500-579 and if you stoop lower than 500, your credit score will poor or miserable. With a bad or poor credit score, it becomes difficult to get any time of financing such as loans and mortgages. Even if you qualify for financing, the interest rate will be astronomical.
People with a bad or poor credit score start looking for a credit card with no annual fees to avoid the costly expense. Although bad credit credit cards with no fees exist, the offers on such cards are not very attractive and they have a high APR and interest fees.
To apply for a bad credit credit cards with no fees, the claimant will have to be employed or have a steady source of income to get approved. The issuing company will rationally keep the credit limit lower than the monthly income and within appropriate debt to income ratio.
There are two possibilities for credit rating requirements. The first one is no credit check, where the credit card company does not consider the credit history of the applicant. The second possibility is where the credit card program is customized according to the requirements of bad credit rating.
Bad credit credit cards with no fees typically have high Annual Percentage Rate (APR) and a compulsory deposit fee that is equivalent to the credit limit.
If you spend a sensible amount of money on this credit card, stay below your credit limit and make timely payments, the no fees card will do you good as you will only have to pay the start up fee, APR and late payment fee in some cases. You will save a handsome amount of money on annual fee.
The credit limit on bad credit credit cards with no fees is very low making it easier for you to get closer to or cross the limit.