Warning: Bad Credit Cards Ahead
Beware of bad credit cards -- or you might find yourself in dire financial straits
Why do bad credit cards continue to thrive? Is their marketing campaign really that slick, or because they take advantage of people who have no alternatives? The answer is yes! Bad credit cards take advantage of people who desperately need credit, and they do it by spending more on advertising than on keeping current customers happy.
Fortunately, you don't have to get sucked into this game. If you're dealing with bad credit, there are easy ways to recognize bad cards and make sure you don't wind up even further in debt.
Warning signs of bad credit cards
So how do you know you're dealing with bad credit cards? Plenty of options exist for people dealing with bad credit. But here are some warning signs that let you know you're dealing with one:
The card guarantees acceptance regardless of your credit score
That usually means they're not interested in building a long-term relationship with you, and that usually means they know you won't stick with them for long.
The sales people harass you
Only bad credit cards pursue customers with the dogged determination we associate with shady salesmen. A good credit card might follow up with you, but in the end they have plenty of customers whether you sign up or not. On the other hand, bad credit cards are desperate for your business.
The contract requires a magnifying glass to read
Do you get the feeling there's something you're not supposed to find out until it's too late? Read contracts carefully. Otherwise, when that 5.4% APR turns into 35.4% in three months, you could be in for a nasty surprise.
The salespeople dodge your questions
Questions about things like interest rates, repayment plans, credit limits, and annual fees are standard fare, and most credit card companies are ready and willing to answer them. If the company seems to dodge any of those queries, run in the other direction.
Pursue every option in the book rather than dealing with these cards. Remember, bad credit cards are a pathway to bad credit.
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