The main disadvantage of a bad credit card is the interest rate of course. If you didn’t have a bad credit rating you would look twice at the thing, and you’d probably laugh out loud at anyone who signed on the dotted line to get one…
Well, becaues you’re here reading this, and because you’ve clicked to read a little more, i am assuming that you are past the laughing stage and onto the “damn, i really need to rebuild my credit scoring” phase. Well this is true, it is a good tool for rebuilding your credit scoring. But it is also a minefield of opportunity to mess it all up again and cause years of greater hardship that you’ve had before.
Although the lenders like Capital One for example will give you a credit card and a small limit to spend, they can still trap you with it. If you don’t pay off your account every month (which is what you should do) they will charge you interest on items from the day you purchased them. This is designed of course to scare people into paying off their bill each month, but what if you can’t. What if there is a real genuine reason where you can’t pay it? You can’t just phone them up and say i’m having a little difficulty, oh no, you have to face the wrath of that killer interest rate, and that will put you back into debt quicker than you did it the first time around!
Be careful and make sure you are disciplined enough before taking on a bad credit card.
Tags: bad credit, bad debts, credit cards