Bad Credit Card Offers

Credit cards can be necessary in today's world. You need a credit card to rent a car. Cable companies or satellite dish companies require a credit card in order to sign up for their services. Those with a poor credit history or even no credit history are suddenly subject to a painstaking search for a credit card company who will give them a chance. Often, this requires a person to go to credit card companies who specialize in poor credit ratings.

A credit card issued to someone with a poor credit rating can seem ideal. Unfortunately, they often contain hidden fees and absurd interest rates that leave the average person scrambling to then pay his or her bills. Once trapped into one of these credit cards, it can take years to get out of it.

With a credit card issued to someone with poor credit, the credit card limit is usually set very low. You can expect your credit limit to be less than $500. Many feel this low limit is the perfect way for them to build a credit history without getting into financial trouble. What people often miss are the exorbitant fees to sign up and receive these cards.

One of the most popular bad credit credit card issuers touts their cards as being perfect for those with bad credit. They offer a credit card for anyone with bad credit and start the credit limit very low at $250. Look at the fees and you'll see that it isn't so great.

· Account Set-up Fee $29

· Additional Cards $20

· Annual Fee $48

· One Time Program Fee $95

· Participation Fee $72

So before you even use the card, you are charged $244 or $264 if your spouse needs a card as well. This is all charged to your card before you have even used it. Suddenly, you are over your starting credit limit before you have even used the card. Now look at their other fees:

· Credit Limit Increase Fee $25

· Internet or Phone Payments $7 per

· Late Fee $25

· Over Limit Fee $25

· Returned Item Charge $25

So if you pay on line, they will charge you a fee. If they raise your credit line (even if you do not request it), they will charge you a fee. And, don't return an item you have purchased using this card or you will wind up paying $25.

With a starting credit limit of $250, you would already be at or over the credit card limit the day you receive the card. Now start adding in a monthly fee of $25 for being over your limit and within a year you are down more than $500 in fees alone.

Credit cards offers geared for those with poor credit are dangerous. Despite the allure of these programs to those who have failed to receive a credit card from other companies, you are best running far, far away. Open a checking and savings account with your local bank, sign up for a debit card, and use that to build a credit card. Within six to twelve months you will find that the better credit card offerings start pouring in.