Unsecured credit cards for bad credit Canada can help you out of a bad spot and make it possible for you to get ahold of some credit to use again, but you should be aware that they’re not exactly like other types of cards. In the interest of getting ahead in your financial life, there are some special considerations to make before you get one.
What Are the Interest Rates Like?
One of the most important things to remember when using unsecured credit cards for bad credit is that these kinds of credit cards are rarely going to give you a good deal on your interest fees. You should know what kinds of rates you’ll be expected to pay and how they compare against what you’d get from other cards on the market. Since you must have had some debt troubles in the past if you’re interested in this kind of card, you must take care to get the best rates you can find to avoid making them any worse – and even so, you’ll need to take care to be on top of your balance from month to month. Remember, you’ll only ever pay interest if you don’t pay off what you owe before your grace period is up, so it’s completely possible for you to avoid those costs altogether if you’re smart.
What Kinds of Other Fees Might Apply?
It’s always smart to check out the extra fees you might be paying when choosing any kind of credit card, and tha goes double for ones aimed at people with bad credit. The most common one that you’ll run across is the annual fee, which most cards in this category will have. Whatever it is, you’ll pay that sum of money every year for as long as you have that card. You want this to be as low as possible because it’s essentially a payment you’re making just to have access to credit, not for any other value being offered. The nice thing about it is that once you’ve rebuilt your credit history enough to qualify for better cards, you can usually get yourself a no-fee card instead and leave annual fees behind you.
These aren’t the only extra costs you should be prepared for, though. Credit cards also charge late fees, foreign transaction fees, returned payment fees and overlimit fees depending on what you’re doing with your card. Before you commit to any particular card, be sure to research what it charges in these cases so you can properly plan for these kinds of expenses should the need arise.
Rewards Or No Rewards?
The other major consideration you should make with these kinds of cards is whether or not you want to prioritize getting rewards. Because credit cards for bad credit are usually not the most generous forms of credit, it’s rare for these kinds of cards to have any kind of reward system attached to them at all. However, if you get lucky, you might be able to find one that does. Small levels of cash back rewards are more common than travel rewards or generic rewards, and probably more practical for the majority of bad credit applicants as well. However, be conscious of the fact that choosing a card that gives you this advantage will likely mean choosing one with higher fees somewhere else. The cost-benefit equation may still work out in your favour, but it isn’t a certainty, so be sure to do the necessary calculations yourself before getting your heart set on any one card.
Let the Experts Help You Choose Unsecured Credit Cards For Bad Credit Canada
Picking the right unsecured credit cards for bad credit Canada for you is no easy task, even when you know what you’re looking for. Making your selection through Bonsai Finance can help whittle down your options to the very best available. When you’re taking such a big and potentially risky step back into the credit market, you might as well do it right, and that’s what we’ll help you to do.