{"id":193867,"date":"2021-03-04T13:02:00","date_gmt":"2021-03-04T10:02:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/5-signs-of-a-predatory-credit-card\/"},"modified":"2021-03-04T13:02:00","modified_gmt":"2021-03-04T10:02:00","slug":"5-signs-of-a-predatory-credit-card","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/5-signs-of-a-predatory-credit-card\/","title":{"rendered":"#\n  5 signs of a predatory credit card"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a368947c0a6e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a368947c0a6e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-of-a-predatory-credit-card\/#Steer_clear_if_you_see_any_of_these_red_flags\" >Steer clear if you see any of these red flags<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-of-a-predatory-credit-card\/#Excessive_fees\" >Excessive fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-of-a-predatory-credit-card\/#2_Exorbitant_interest_rates\" >2. Exorbitant interest rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-of-a-predatory-credit-card\/#3_Low_credit_limits\" >3. Low credit limits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-of-a-predatory-credit-card\/#4_Partial_credit_reporting\" >4. Partial credit reporting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-of-a-predatory-credit-card\/#5_No_upgrade_path\" >5. No upgrade path<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/5-signs-of-a-predatory-credit-card\/#Funto_Omojola\" >Funto Omojola<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  5 signs of a predatory credit card<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Steer_clear_if_you_see_any_of_these_red_flags\"><\/span>\n  Steer clear if you see any of these red flags<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000181561\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <em>This <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/5-credit-card-red-flags-to-avoid?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=946711\" class=\"icon none\"><em>article<\/em><\/a><em> is reprinted by permission from <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\"><em>NerdWallet<\/em><\/a><em>.\u00a0<\/em><\/p>\n<p> Choosing the right credit card can be difficult, especially\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/apply-credit-cards-bad-credit?utm_campaign=ct_prod&amp;utm_content=946711&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">if you have poor credit<\/a>\u00a0(FICO<br \/>\n        FICO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200175312\/composite\" class=\"negative\">-2.41%<\/bg-quote><br \/>\n       scores of 629 or lower) or are new to credit cards entirely.<\/p>\n<div class=\"paywall\">\n       Plenty of cards can help those with limited choices, but some options \u2014 including certain\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/secured-credit-cards-vs-unsecured-difference?utm_campaign=ct_prod&amp;utm_content=946711&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">unsecured credit cards<\/a>\u00a0for bad credit \u2014 are more costly and potentially more perilous than others. These \u201csubprime specialist issuer\u201d cards, as they\u2019re often referred to, might be easier to qualify for, but they typically come with soaring rates and unnecessary fees that make them quite expensive to carry.<\/p>\n<p>To end up with the right card in your wallet, it\u2019s important to steer clear of predatory options. Here are five red flags to look out for.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Excessive_fees\"><\/span>Excessive fees<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>An annual fee on a credit card may not be ideal, but it doesn\u2019t necessarily qualify as excessive.\u00a0In fact,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/can-qualify-credit-card-bad-credit?utm_campaign=ct_prod&amp;utm_content=946711&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">if you have poor or thin credit<\/a>\u00a0or are unbanked, a card with an annual fee may be your best and only option. Annual fees can also be worth paying if the card offers ongoing rewards, perks or other incentives to offset it.<\/p>\n<p>Still, the yearly cost of holding on to a card shouldn\u2019t be outlandish. Many\u00a0decent ones for those with poor or thin credit offer a relatively low and manageable annual fee, often $50 or below.<\/p>\n<p><strong>Don\u2019t miss: <\/strong>A pandemic paradox: Americans\u2019 credit scores continue to rise as economy struggles \u2014 here\u2019s why<\/p>\n<p>But annual fees aren\u2019t the only costs you can incur. Many so-called fee-harvester cards feature charges that can sneak up on unknowing consumers. Examples include <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication fees, activation and processing fees, and monthly maintenance or membership charges. These fees are often unnecessary and avoidable, but they are common on some unsecured cards for bad credit \u2014 meaning cards that don\u2019t require a security deposit as collateral.<\/p>\n<p>Before deciding on a card, be sure to read its terms and conditions so that you\u2019re aware of what fees you may face.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"2_Exorbitant_interest_rates\"><\/span><strong>2. Exorbitant interest rates<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>If you don\u2019t carry a balance month to month, then a credit card\u2019s interest rate is irrelevant; you\u2019ll never owe any interest. But financial hardship and other factors can make it necessary to carry debt, which can be convenient but expensive.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>As of November 2020, the average annual percentage rate for cards that accrued interest was 16.28%, according to the Federal Reserve. The rate you\u2019ll be charged will depend on your creditworthiness, which indicates to the card issuer the amount of risk it is taking by extending you credit.<\/p>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>ly speaking, the lower your credit scores, the higher your APR will be.\u00a0But some credit cards aimed at consumers with poor credit charge APRs that are truly dizzying, sometimes up to 30% or more.<\/p>\n<p>Credit cards that offer low or promotional interest rates typically require good credit (FICO scores of at least 690), but there are options for others that can make carrying a balance less costly:<\/p>\n<ul class=\"articleList\">\n<li>\n      Secured credit cards\u00a0require you to make a refundable security deposit that will act as your credit limit \u2014 and your collateral. They can be easier to get because the bank is taking less of a risk on you. Secured cards, especially those that also charge annual fees,\u00a0sometimes have lower ongoing APRs.<\/p>\n<\/li>\n<li>\n      Depending on your credit score, you may be able to qualify for a card from a credit union, which may offer lower interest rates than products from major banks. Still, to get such a card, you\u2019ll need to join the credit union, and there may be restrictions on membership.<\/p>\n<\/li>\n<\/ul>\n<h6><span class=\"ez-toc-section\" id=\"3_Low_credit_limits\"><\/span><strong>3. Low credit limits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Some starter credit cards or unsecured cards for\u00a0bad credit\u00a0will advertise a credit limit range. The limit you qualify for will depend on your creditworthiness, but it\u2019s worth understanding how a low credit limit can hamper you.<\/p>\n<p>For starters, if the card also charges an annual fee, that often means you\u2019ll need to subtract that amount to determine your actual credit limit. For instance, if you\u2019re approved for a credit limit of $300 on a card with an annual fee of $50, then your initial credit limit is really $250 until you pay that fee. Essentially, you\u2019re in debt im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely, and you\u2019ve lost about 17% of your credit limit before you even use the card for the first time.<\/p>\n<p>A low credit limit can also have implications for your\u00a0credit utilization ratio, which is a significant factor in your credit scores.\u00a0Credit utilization is the amount you owe as a percentage of your available credit. So if you have a $1,000 credit limit and a $500 balance on the card, your credit utilization is 50%.<\/p>\n<p><strong>Read: <\/strong>5 credit mistakes that can come back to bite you<\/p>\n<p>A typical recommendation is that you keep your credit utilization below 30%.\u00a0But in general, the lower that percentage, the better for your credit scores.<\/p>\n<p>And lastly, if the card earns rewards, a low spending limit means a low limit on how much in rewards you can rack up.<\/p>\n<p><strong>Nerd tip:\u00a0<\/strong>Some credit cards advertise the possibility of an eventual credit limit increase with responsible credit card use.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"4_Partial_credit_reporting\"><\/span><strong>4. Partial credit reporting<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>For building credit, you\u2019ll ideally want a card that reports to all three major credit bureaus \u2014 Equifax<br \/>\n        EFX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208789454\/composite\" class=\"positive\">+0.57%<\/bg-quote><span>,<\/span><br \/>\n       Experian<br \/>\n        EXPGY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208623784\/delayed\" class=\"negative\">-0.84%<\/bg-quote><br \/>\n       and TransUnion<br \/>\n        TRU,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209192458\/composite\" class=\"negative\">-0.99%<\/bg-quote><span>.<\/span><br \/>\n       These bureaus compile the credit reports that form the basis of your credit scores.<\/p>\n<p>Cards with incomplete credit reporting can be problematic because you won\u2019t necessarily know from which bureau a future lender might be pulling your credit report.<\/p>\n<p>For example, if a lender pulls reports from TransUnion, but your card reports only to Equifax and Experian, then the lender may not be able to see your credit activity.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"5_No_upgrade_path\"><\/span><strong>5. No upgrade path<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>If you use your secured or starter card responsibly, it can strengthen your credit. At that point, you may be looking to transition to a credit card with better terms, richer rewards or more generous perks.\u00a0To that end, it\u2019s preferable if your existing card makes that an easy process.<\/p>\n<p>The best credit cards for poor credit \u2014 primarily secured cards \u2014 typically offer upgrade paths, either automatically (with responsible card use) or upon request. This means you may eventually qualify to \u201cgraduate\u201d to a better card within that issuer\u2019s family of products without having to close your existing account.\u00a0And if your account is in good standing when you upgrade, you\u2019ll get your deposit back.<\/p>\n<p><strong>Also see: <\/strong>Watch for these trends in credit cards this year<\/p>\n<p>Cards that don\u2019t offer a path to upgrade can still be useful. But in the long run, you\u2019ll be stuck with a product that you\u2019ve outgrown, which can be particularly costly if you\u2019re paying an annual fee.\u00a0While you can choose to close the card outright, doing so can negatively impact your credit scores.<\/p>\n<p><strong>More From NerdWallet<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/7-credit-card-perks-to-prioritize-in-2021?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=946711\" class=\"icon none\">7 Credit Card Perks to Prioritize in 2021<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/how-to-make-debt-less-costly-when-you-need-it-in-a-crisis?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=946711\" class=\"icon none\">How to Make Debt Less Costly When You Need It in a Crisis<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/covid-credit-card-relief-2021?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=946711\" class=\"icon none\">What COVID-Related Help Are Credit Card Issuers Offering in 2021?<\/a><\/p>\n<\/li>\n<\/ul>\n<p><em>Funto Omojola writes for NerdWallet. Email: fomojola@nerdwallet.com.<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Funto Omojola \",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Funto_Omojola\"><\/span>Funto Omojola <span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2C53942410B%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 5 signs of a predatory credit card &#8221; Steer clear if you see any of these red flags This article is reprinted by permission from NerdWallet.\u00a0 Choosing the right credit card can be difficult, especially\u00a0if you have poor credit\u00a0(FICO FICO, -2.41% scores of 629 or lower) or are new to credit cards entirely. Plenty&#8230;<\/p>\n","protected":false},"author":1,"featured_media":193868,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-193867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/193867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=193867"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/193867\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/193868"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=193867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=193867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=193867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}