Bad Credit Credit Cards – Low Interest Rate Cards Doable?
Posted on | September 28, 2009 | No Comments
Bad credit credit cards have greatly gained in popularity since the beginning of the recession. The question that many borrowers want answered is “are low interest rates doable for a bad credit credit card?” The only way to answer this question is to find out your credit score. If you truly have bad credit it is very unlikely that you can get a low interest rate. Credit card companies have gotten much more strict with their lending practices since the beginning of the credit crisis.
A credit score of 720 today is the equivalent to a score of 680 in 2006. This means that you must have a much better credit score today to get the low rates that you desire. The only way that you will truly know your credit score is to actually buy a credit report from one of the major credit agencies. I would suggest using Experian.com as they provide you with all the information you need for $15.
Once you find out your credit score you will be able to better understand why credit card companies are assigning you a specific interest rate. If you have a credit score of 720 yet you are still getting a high interest rate, I would suggest applying for another card or calling the company and inquiring about your rate. If you are a good credit borrower you should be getting a great interest rate, definitely in the lower teens or even single digits.
If your credit score is 650 or below you are going to find that your interest rate is in the upper teens or even the 20s. No matter how many cards you apply for you are likely to find this to be the case. After the credit crisis these companies know that they are taking on great risk by letting Americans borrow money. They are not going to let bad credit borrowers borrow money at very low interest rates.
Even though you might not get the best interest rate there are still good deals out there for bad credit credit cards. There is a good chance that you can get a very low interest rate during the introductory period so use this time to build your credit and actually apply for other credit cards that may offer you a better rate or more incentives.
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Author: Alan Lake
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