Dave Ramsey is recognized as the world’s leading financial advisor. He holds degrees in finance and management, and is a certified public accountant. His credentials certainly indicate that he knows what he is talking about. In fact, his credentials are so good that many major banks and corporations hire him as an adviser. It was not that long ago that he opened his own personal practice. He has been able to build up a large clientele thanks to his impressive earnings as a Financial Planning and Retirement Expert.
Credit cards for bad credit are usually referred to as “bad credit” cards. As opposed to normal credit cards which can be used by any consumer who has a good credit score, these cards are designed especially for those who have a bad credit history. They usually carry higher interest rates and annual fees. However, they do not make good credit purchases easily. If you are planning to get one of these cards, here are a few things you should keep in mind:
Dave Ramsey states that the risk of credit cards for bad credit are much higher than other types of unsecured credit. This means that if you fail to meet your monthly payments on time, you could end up in deep financial trouble. So how do you know whether to get one of these cards? The first thing you should consider is your current financial situation. You need to come up with a realistic budget that tells you how much money you have coming in and how much money you spend each month.
You also have to take your financial history into account when you are applying for these cards. You cannot apply for a card based solely on your credit rating. Banks and other lending institutions examine your credit history before offering you a loan or a card. Even if you have poor credit, there are still unsecured credit cards available to you.
A few of the unsecured cards that Dave Ramsey reviews offer no interest rates for a period of one year. If you can qualify for this one-year no interest deal, this is the card for you. It will help you reestablish your credit and you will begin to get better interest rates from other lenders. After you have made sure that you have a good payment history on the card for at least a year, you will be offered another chance at a card that does not charge any interest for an introductory period of one year.
In addition to interest rates, some of these credit cards will offer additional perks. Some come with balance transfers for free. Others come with special offers that give you big savings. You should find out what kinds of benefits are being offered by each card. Once you know what benefits you want, you can go to a website and apply for a card that offers them. The beauty here is that many of the credit card companies have websites now that allow you to shop for the perfect credit card.
Once you have chosen which credit cards Dave Ramsey reviews you should read all of their terms and conditions very carefully. These will tell you exactly what you can and cannot do with the credit card. Find out if you are restricted to making purchases using the card for a certain amount of money or if you can use it for gas and groceries as well. Find out what the interest rates for any monthly charges are and how much of a percentage they apply to your entire balance. These are all things that you will need to understand and work out.
Many people use their credit cards for smaller purchases that they make everyday. Because these types of purchases do not carry as much interest, they carry less overall debt. So in the long run, by keeping your balance small, you can save quite a bit of money. Most of the time, Dave Ramsey credit cards will also earn you reward points or have other ways of earning free gift cards or merchandise. Just make sure that you read all of the details before choosing which card to apply for.