What are the Downsides of Applying for and Using Unsecured Credit Cards?

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What are the Downsides of Applying for and Using
Unsecured Credit Cards?
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• In this presentation, well examine the drawbacks
  of taking out and managing unsecured credit cards
  for bad credit and how you, as prospective
  cardholders, can effectively deal with them.

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They usually carry high interest rates.

• Unsecured credit cards for bad credit usually
  come with higher rates of interest than their
  secured counterparts. However, lines of credit
  extended to consumers with poor credit standing
  tend to carry the highest interest rates. After
  all, card issuers use this feature to compensate
  for the great risk involved in offering credit
  cards to individuals with histories of payment
  delinquency, tax liens, and bankruptcy.
• Still, you can improve your chances of finding an
  affordable card account if you will take the time
  to shop and compare what each issuer offers. Look
  very closely at the rates of interest and fees.
  And dont forget to inquire about the other
  features of each card program, particularly the
  payment terms and options, the credit limit, and
  of course the eligibility requirements. In so
  doing, you will most likely end up with an
  unsecured credit card that matches your needs,
  spending habits, and budget.

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Issuers of bad credit-credit cards are somewhat
hard to find.

• Since theres a great risk involved in extending
  lines of credit to consumers with bad credit
  history, more and more companies today are
  dealing exclusively with people who have
  good-to-excellent credit scores.
• Nevertheless, there are steps you can take to
  find issuers of bad credit-credit accounts. For
  instance, you can request for referrals from your
  close friends, relatives and colleagues,
  especially from those who have just applied for
  unsecured credit cards for bad credit. You may
  also use reliable search engines so that you can
  locate online credit organizations. By employing
  these tips, we believe that you can boost your
  likelihood of finding a credit card firm that can
  give you what you want, despite your poor credit
  standing.

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You might find it very difficult to convince card
issuers

• to approve your request for a line of credit,
  especially if you have a very low credit score.
• Still there are techniques you can employ to
  improve your chances of scoring an affordable
  deal. For instance, you can approach a family
  member or a close friend who has a high credit
  score and convince him or her to co-sign your
  application for unsecured credit cards for bad
  credit. After all, the excellent credit standing
  of your close friend or relative can compensate
  for your less than perfect credit score. In fact,
  it can pull up your credit rating and thus boost
  your likelihood of being granted the credit card
  you need.

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• You may also decide to clean up your annual
  credit report. Order copies of your credit file
  and find time to review the transactions listed
  on it. Always remember that a single error in
  your credit and payment transactions can inflict
  further damage to your credit history and drive
  way prospective card issuers.
• So by taking the time to go over the items on
  your report you can immediately catch negative
  entries which might get in your way of qualifying
  for an unsecured credit card. And if you will
  dispute such items with the three major credit
  bureaus, you can look forward to receiving an
  updated report that you can use in applying for
  the line of credit you wish to take out.