Bad Credit Credit Cards – Can You Get a Low Interest Rate?
Posted on | August 26, 2009 | 2 Comments
Bad credit credit cards are becoming very popular during the recession. Many current credit card holders have seen their credit drop which has caused their interest rate to increase. This is never a good thing but it is happening in the United States. Due to the increase in personal interest rates many borrowers are looking for more options when it comes to getting a new credit card. The one good thing about this economy is that many financial institutions are working very hard to get your business.
Poor credit loans have definitely changed the way marketing is done in this country; now companies are spending a great deal of money on advertising. You have probably seen advertisements all over the television and Internet for low interest credit cards. The thing they are not telling you is that low interest is around 13%. Most borrowers who do not have amazing credit are getting a double digit interest rate at the current time. Credit card companies are trying to compensate for the credit card bill of rights but hitting borrowers with high fees very early in the process.
Bad credit credit card companies cannot jack up rates as easily as they used to be able to so they are hitting borrowers at the very beginning. Many companies are advertising interest rates below 10% but unless you have a credit score of over 740, it is very unlikely you will get an interest rate this low. Do not let this deter you though as you can use the competition against each other. If you are very good at negotiating a deal, you should contact several lenders and use their offers against the competition; you may get an extremely low interest rate by doing this.
Overall, this economy has made it very difficult for borrowers to get what they want. From October of 2008 to March of 2009, almost all lenders were not lending money at all. Also during this time, we saw credit card companies jacking up interest rates because they new that they were going to get hammered by the credit card bill of rights. Luckily, President Obama saw all this stuff early and changed most of it. We are now seeing lenders lending money and credit card companies can no longer jack up your fees.
When getting a bad credit credit card you might not get the lowest interest rate but you can use your abilities to lower your rate or get better incentives. Many credit card companies are going to be willing to give you some great rewards programs if you are a first time customer. Some of these businesses just want to get more customers so their books look a little bit better even if that may not be the case. Get out there and see what low interest rate you can get on your bad credit credit card.
Author: Heather Best
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2 Responses to “Bad Credit Credit Cards – Can You Get a Low Interest Rate?”
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September 4th, 2009 @ 9:35 am
I JUST WANT TO SEE IF I COULD APPLY FOR A CREDIT CARD
September 19th, 2009 @ 1:34 am
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