- Your credit score. If you have a decent credit score, it won’t be a problem to gain approval for the card. However, your credit score will determine your interest rate. The lower the score, the higher the interest rate. Be careful when you shop around and look for lenders that don’t require a credit check if you know your score is bad.
- Fees. There are some lenders that will charge yearly or annual fees on the credit card. Wells Fargo is one lender that is known for offering unsecured credit cards and then penalizing you with high interest rates and fees. Be weary of certain lenders like this that like to profit off your misfortunes.
- Credit limit. Sure you can get approval for a credit card, but how large is your limit? Some lenders will not allow you to have large limits on the account because they just don’t want to take a risk by giving you access to a lot of free cash.
If you know you struggle with credit cards, do not open one. People that are stuck in a debt cycle will only hurt themselves by opening up another credit card to use for their spending sprees. Opt for personal loans with bad credit or credit cards for people with bad credit instead as you have a structured payment plan and you know when the loan will be paid off and you will be debt free. You may pay more money towards interest, but it’s better than continuing the debt cycle.