Tuesday, January 20, 2009

Credit Cards for People with Bad Credit

Credit cards for people with bad credit are a form of borrowing that often involves charges. So it's wise to compare terms and fees before you agree to open a credit or charge card account. Try looking for a credit card with a low APR. Find out the APR because this is the amount charged to you on monthly balances.

Are you overwhelmed with credit card offers and don’t know which one is right for you? Tired of looking for a credit card? Chances are you have received your share of credit card solicitations. Not sure which credit cards you should apply for? Shop around because not all credit cards for people with bad credit are created equal.

The following are some important things to consider that generally must be disclosed in credit card applications or with credit cards that require no application.
Annual Percentage Rate
Periodic Rate
Variable Rate and Grace period

The card issuer must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period. Some credit cards for people with bad credit allow the issuer to change your APR when interest rates or other economic indicators - called indexes - change. Because the rate change is linked to the index's performance, these plans are called "variable rate" programs.

By making on-time payments you could be on the road to repairing your bad credit.

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