Online Credit Card Processing

With a bad credit and less than perfect credit history, getting a credit card with competitive features is not that easy. In this article we take a look at the 5 major drawbacks that come with a bad credit credit card.

1. High APR

With a bad credit credit card the interest rates are reasonably higher. Forget those 0% intro APRs- they rarely come with a bad credit credit card. So, keep your credit card balances low, to stop this high APR from burning a hole in your pocket.

2. One time processing fee

Some credit card companies charge a processing fee for people with bad credit who apply for credit card. This is generally charged by credit card companies due to the credit checks, other formalities and risk involved in providing a credit card to bad credit people. If you are going for a secured bad credit credit card then this fees can be waived, otherwise it has to be paid. The catch here is that credit card companies demand upfront payment of processing fee. But, a wise credit card consumer will find a credit card company which charges the fees to the credit card not demands cash in advance.

3. High annual fee

Keeping the bad credit credit card is definitely going to cost a lot in terms of annual fees depending on the credit report it can go in hundreds of dollars per annum. Bad credit credit cards with 0 annual fees offer is very difficult to find.

4. High late payment fee

Late payment with a bad credit credit card is severely penalized. The credit card companies charge heavy late payment penalties on repayment default and are very quick in reporting the default to credit rating agencies with a bad credit credit card.

5. Lower credit limits

Since, the credit card companies face increased risk in providing credit card to bad credit people, therefore the credit limits are lower. The credit limits can be increased with secured bad credit credit card and proper repayment of credit card balances.

These 5 factors related with bad credit credit cards increase the cost of owning one. Comparing various credit card offers, especially, when you have a bad credit will help you lower the interest and fees burden of a bad credit credit card.

The online processing of credit card application is fast gaining popularity because of the various benefits it offers. The procedure is different from offline or regular credit card application and seems more convenient, however there are few things to note about the online credit card application process. This article takes a look at few such things.

The process

Though online application process is supposed to be less cumbersome in terms of paperwork, convenience and time, but in reality it is just a part of the regular credit card issuing processes. At first the application can be online but sooner or later the paperwork has to be done and it is more or less mandatory with every issued credit card. Secondly, some credit card companies, find it too risky to give an instant decision based on facts which can be easily manipulated, the question of identity theft also comes into place and almost all the decisions are 'in principle' which get rolling after proper verification etc.

Fees

Some credit card companies charge a small fee for every online application to be made, part of this could be to support their IT infrastructure and personnel, but most of them do to deter fraudulent enquiries that can cost them a fortune in verification and other procedures. So, it is better to checkout with the credit card companies whether they have any such fees and if so what is the exact amount. Because, it is going to increase the cost of acquisition of credit card for you. It is also good to verify whether the APR's and other costs associated with the credit cards are different for offline and online processes, or same. If you find a significant difference then it is good to adopt the application process which offers the lowest rates.

Credit history

Having a poor credit history and applying for the gold, platinum or other such credit card for which a good to excellent credit history is essential prerequisite, will only frustrate you. The denials, rejections etc. can cost you mentally as well as financially. So, it is always better to confirm with the credit card company about the credit history requirements.

Choice and terms

Almost all the credit card companies that offer online application process do not allow you to compare other credit cards before applying online. The necessity of a comparison cannot be understated. This is very crucial to make the right credit card decision. The online credit card application form has the most essential terms and conditions listed somewhere below the main application. It is good to go through the document before filling in the details. Some facts that look very attractive on the face can prove disastrous when looked in the light of the fine prints.

The online application process has its own merits and can prove to be quite a time and effort saver if used in a proper way.