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Impartial Bad Credit Unsecured Credit Card Review
Bad credit unsecured credit cards can prove rather elusive, largely because they aren't widely advertised. Anyone who has missed payments on past and present credit agreements, gone through the mortgage foreclosure process or entered a debt-free solution (debt settlement program, Debt Management Plan or filing bankruptcy) will have an adverse credit rating. These past indiscretions will be registered with all leading credit reference agencies and show on your credit report for a period of up to 10 years.
An Assessment of Credit Cards for Bad Credit
Whilst a bad credit lender provides a valuable service that mainstream providers often fail to offer, they still operate to make a profit. This article aims to provide a fair and impartial assessment of the leading bad credit unsecured credit cards. Whilst a higher rate of APR is to be expected, uncovering lots of hidden fees and charges is likely to mean that it is not right for you. This may mean that a secured or pre-paid credit card provides a better alternative.
Centennial Gold MasterCard (American customers only)
Customers are offered a headline rate of APR of just 9.9% along with a grace period of 25 days before any interest is paid. Provided that you make repayment on-time each month, it is possible to avoid any interest payments.
Subject to acceptance, this bad credit unsecured credit card offers customers a credit limit of at least $250. Provided that payment is made on-time, this figure will be reviewed after just 6 months.
During the first 90 days of ownership, a cash advance of up to 10% of the credit limit can be taken. Provided that there aren't any returned payments during this timeframe, the amount could increase to 50%. The maximum charge for taking a cash advance is $10. The 25 day grace period does not apply.
Those who are granted this credit card for bad credit will need to pay several charges. These include an annual fee of $48, a program fee of $95, an account set up fee of $29 and a monthly servicing fee of $7. This means that the cumulative charges add up to $256 during the first year of ownership.
The risk posed to the lender is minimal because of the high management charges. The benefit to you is that you now have a credit card for securing certain purchases (such as car hire or a hotel room). You will also be able to slowly re-build your credit rating so that mainstream products become available.
Aqua MasterCard (UK customers only)
This is a bad credit unsecured credit card that offers its customers a credit limit of up to £2,200 with no annual charge. Whilst the rate of APR is as high as 39.9% APR, interest payments can be avoided if the balance is settled in-full each month.
Whilst an adverse credit history affects your credit rating for up to 6 years, making payment on-time each month will help your credit rating to improve. Not everyone will be accepted, but this is an excellent credit card for poor credit. Make sure that you are on the electoral roll before applying.
Bad credit unsecured credit cards offer customers a convenient way to pay for goods and services along with an opportunity to re-build your credit rating. Always try to settle your balance in-full each month in order to avoid credit card debt problems.
Disclaimer: This article in no way attempts to provide legal, financial or tax advice. One should consult a licensed attorney, tax advisor, or other qualified financial professional before proceeding.
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