Unsecured Poor Credit Credit Cards – Reward Cards Available
Posted on | December 16, 2009 | No Comments
Applying for an unsecured poor credit credit card is something that many American consumers will do during the holiday season. When going in and out of retailers you are going to be offered many different types of reward cards. Most retailers currently have some type of credit card and they are going to do everything possible to get you to sign up for one of those cards.
It is very important that you completely understand the terms and agreements on any card before signing up. One of the most important things you will need to check is the interest rate that this type of card is going to have. Many retailers apply a very high interest rate to their credit cards. If you find and interest rate above 20% is not worth it to get one of these cards even if it has rewards.
What most consumers do not realize is that even though you are getting rewards the interest-rate is offsetting these rewards greatly. If you are getting 1% cash back on your rewards but have a 20% interest rate on your card you are basically losing $19 out of every $100 spent over the course of a year. This gets especially worse when you do not pay your credit card off for several years.
All borrowers should do their best to get a low interest rate credit card no matter what the rewards program is. It is actually better to have a low interest rate and get no rewards at all if this is a possibility. Do not get enamored with the fact that you get special coupons and offers from a company. They do this just to you will get a credit card and spend more money over the long run.
Almost every retailer you go in will try to get you to sign up for a credit card this holiday season. Make sure to step back and think about the situation before you decide that a credit card is right for you. They put you on the spot for a reason hoping that you will sign up for a credit card before you even leave their store. Do not get caught in this trap.
Author: Tiffany Mann
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