Bad Credit Credit Cards – Can I Get Any Rewards?
Posted on | August 29, 2009 | No Comments
Bad credit credit cards are becoming all too common these days with credit scores dropping like crazy. Many credit card holders are asking if they can get rewards on the bad credit credit cards. Well, it is highly likely that you can get a card with some type of rewards with bad credit, but that is not what I would be mostly concerned about if I were getting a bad credit credit card. The first thing you should be worried about is the interest rate.
If you are getting rewards on a card, lets say .01 for every dollar spent, but your interest rate is 19.94% then the rewards are not worth it! It would be much better to take a credit card with a much lower interest rate instead and not worry about the few dollars you are going to make in rewards. If you are adamant about paying off your credit card each and every month then go for the rewards card, but if you hold a balance of anything, do not worry about the rewards.
Many credit cards try to lure you in with this tactic. They will offer you great rewards but you end up paying a huge interest rate. If you end up making $20 in rewards a month, you are going to pay over $100 in interest so why is it even worth it? The only people that benefit from this program are prime credit borrowers or those of you who hold a zero balance and continue to pay off your credit card each and every month.
Credit card companies know that they can lure you in with this tactic but do not let them. Sit down and actually crunch the numbers and see if it is worth it to hold a high interest credit card just for the rewards. I would estimate high on the balance amount you are going to hold because almost everyone has more on their credit cards than they expect. If you see the monthly interest is much higher than the rewards you are going to receive choose another card!
There are many options out there when it comes to bad credit credit cards but the best option is the lowest interest rate. If you are considered a bad credit borrower, it is highly likely that you are going to carry a balance on your card and you do not want to end up paying thousands of dollars a year in interest when you could be paying much less. Forget the rewards when it comes to bad credit credit cards and go for the lowest interest rate.
Author: Jesse Wojdylo
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