When it comes to bad credit credit cards, the myths definitely abound. In fact, bad credit credit cards are some of the most misunderstood financial tools of all time. Unfortunately, this makes the waters quite murky for those interested learning more about these financial tools. If you're interested in clearing up some of the confusion, read the truth about these three common myths regarding bad credit credit cards. 1. Interest Is a Killer Sub-prime lenders are notorious for killing borrowers with astronomical interest rates, so it's not surprising that consumers readily assume that bad credit credit cards also come attached with similarly-high interest penalties. Fortunately, this isn't the case. You might be relieved to find out that bad credit credit cards can actually have pretty decent interest rates. Sure, you might have to pay an annual fee, but for an interest rate of less than 15 percent and the chance to rebuild your credit, it's well worth it. So, when you see interest rates of 20%+, walk, don't run! There are much better bad credit credit cards available. 2. You're Going to Need a Deposit If you think you're going to need a security deposit in order to get a credit card, you might be mistaken. It's not as hard to get an unsecured credit card as it used to be, and those with less-than-perfect credit can often qualify for bad credit credit cards that won't require a security deposit. The best way to determine whether or not you'll qualify for bad credit credit cards without a security deposit is to apply for one of the more lenient ones. If they can't approve your unsecured application, then they will oftentimes give you the opportunity of opening an account with a security deposit attached. 3. You're a Second-Rate Customer While there are some bad credit credit cards out there that don't treat their customers very well, there are many that do. In fact, credit card companies known for their excellent customer service (such as Capital One) have begun offering credit cards to those with less-than-perfect credit. If a credit card company treats you with anything but the utmost respect (even if your credit is damaged) take your business elsewhere. You don't have to put up with it. With a topic as sensitive as that of bad credit, it's no wonder there are myths and misunderstandings surrounding bad credit credit cards. Fortunately, the myths are oftentimes unfounded and bad credit credit cards are no longer the stigma they used to be.
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