Top 5 Major Drawbacks Of Bad Credit Card

With bad credit and less than perfect credit history, it is not so easy to get a credit card with competitive features. In this feature, we take a glance at the 5 major drawbacks that appear with a bad credit credit card.

But first I want to inform you that if you want to check the BIN code of the credit card then you can easily check it from the bincodes.

The Top 5 Major Drawbacks Of Bad Credit Card Are:

1. High APR

With bad credit cards, interest rates are reasonably high. Forget those 0% intro APRs, they rarely come with a bad credit credit card. So, keep your credit card balance low, to prevent this high APR from burning a hole in your pocket.

2. One-time processing fee

Some credit card companies charge processing fees for people with bad credit who apply for a credit card. It is usually taken by credit card companies due to the risk involved in providing credit checks, other formalities and credit cards to people with bad credit. If you are going for a secured bad credit card then these charges can be waived, otherwise, it will have to be paid. The catch here is that credit card companies demand advance payment of processing fees. But, an intelligent credit card consumer will find a credit card company that charges a credit card.

3. High annual fee

Having a bad credit credit card is definitely going to cost a lot in terms of annual fees, depending on the credit report it can go into hundreds of dollars per year. 0 It is very difficult to find a bad credit card with an annual fee offer.

4. High Late Payment Fee

Late payments with a bad credit credit card are severely punished. Credit card companies impose heavy late payment penalties on repayment defaults and are very quick to report defaults with bad credit cards to credit rating agencies.

5. Low Credit Limit

Since credit card companies face the risk of providing credit cards to people with poor credit, credit limits are lower. Credit bad can be increased with a credit card and with proper repayment of the credit card balance.

These 5 factors related to bad credit cards increase the cost of owning one. Comparing different credit card & Wells Fargo routing number offers, in particular, when you have bad credit, will help you reduce the burden of interest and fees of a bad credit credit card.