Bad Credit Credit Cards Alternatives
January 7, 2008
Couple of days ago, on a major news agency, I read an interesting article about the worst credit cards. This article pointed out some very interesting facts about bad credit credit cards.
Let’s review some of these items.
The first was an application fee of $29.00 to open the account that may seem reasonable to a person who is desperate to rebuild his or her credit.
The next point covered was annual fees. According to the author of the article, one credit card company charges $150 per year for the privilege of allowing the members carry their card. And finally the $6.50 per month fee in addition to the annual fee.
Ouch and double ouch! We haven’t even begun talking about the interest rate charges. The impact of bad credit should be limited to that - bad credit - and not necessary spill over to cloud your judgment to make bad decisions as well.
My suggestion is to take a deep breath, move away from the computer, grab a cup of coffee or tea, get a notepad and a pen and go to your dining table. Begin with writing down why you are looking for a bad credit credit card. Don’t judge yourself or your motives. This is a brain storming session and not a self worth analysis.
A few examples of what you may come up with are:
<ul><li>I want to reestablish my credit.</li><li>I have maxed out my credit cards and need a new credit card to pay the old one.</li><li>I cannot take advantage of online bargains without a credit card.</li><li>I need a credit card as a form of identification when I write checks.</li><li>I need to fix my bad credit. </li></ul>
This list is different for everyone and based on your answer, you may have options you have not considered before.
Let me give you couple of alternatives to bad credit credit cards.
If you need to take advantage of online bargains, you can apply for a debit card from your bank, savings institution or credit union. A debit card works just like a credit card but it is secured by the funds in your account.
If you need to reestablish your credit, you can use catalog unsecured credit cards that allow you to shop with thousands of merchants. Most of these cards do not even require employment verification and do not check your credit history.
Most people with bad credit history have not learned how to manage money and planning is part of money management. A note pad, a pen and the time to think through things and put them on paper is one of the best money management strategies.
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