Gas credit cards for bad credit, if used properly, can be one way in which those who have a poor financial record can rebuild their history. The difficulty is in finding a card for this specific use when there is a less than perfect record of meeting financial obligations in the past. A gas card for those with damaged history of bill paying is not impossible to find, but it can be a challenge. Here are some key things to look for when you are trying to find a new gas card and have a poor payment record.
Your first step should be to get a copy of your credit report and review it. In fact, there are three major reporting bureaus and you should get a copy of each report. By having a score in hand, you will be in a better position to know where you are. There may be errors on the reports that could be easily corrected. A high percentage of reports have errors. Of course, you might discover that your score is not as bad as you had believed. Free reports are available from many locations including the free annual report required by law from each bureau.
You can find information about gas card companies easily and conveniently by using the Internet. There are several comparison sites that give you side by side comparisons of terms, credit limits, annual fees, grace periods. You should review these sites carefully before making a decision about applications.
One of the first things to check is the annual percentage rate (APR)on the card. This rate is the key factor in understanding what the convenience of the gas card is actually costing you. Naturally, you would expect a card for those with poor history of payments will cost more than for someone with impeccable history. This does not mean you should pay an unreasonable penalty for having bad records.
Keep track of other factors that can affect the true cost of gas cards. Find a company that offers the most flexibility in the card and the payment terms. Those with damaged history are likely to find more limitations on the ability to use the card and the cost of doing so.
Check to see if there is a balance limit on the card. With fuel prices continuing to increase, this could become a limiting factor in your ability to pay for your transportation costs. A low limit that won’t allow you to get through an entire month at your current rate of gas consumption may force you into new methods of getting to and from critical destinations such as work and school.
Other features to check include whether there is a monthly servicing charge, an annual card fee or a set up fee. You should make certain that you know whether or not there is a fee assessed if you go over the limit. Some companies charge penalties when customers go over limit that can effectively raise the cost of fuel to astronomical levels.
Gas credit cards for bad credit may be a reasonable approach to repairing financial history. The payments must be on time and in full each month. It takes time to prove a changed and more mature approach to financial obligations.