The global recession has resulted in many Americans losing points on their credit score and banks tightening the access to credit. The economy struggles to improve, but many are still unemployed and unable to pay their mortgage or get access to auto loans. Recently, credit cards companies have decided to loosen their belts and again offer credit cards to those with bad credit ratings.
Credit card offers for those with bad credit were up 41% last year. Unfortunately, the terms for these cards are not always ideal. Currently, the APR for those with bad credit is approximately 20%, while those with good credit can expect about 13%.
According to credit card analyst Beverly Harzog, even just a year ago it was more difficult for someone with bad credit to get a credit card. However, banks have realized to increase their revenue they also need to expand their customer base.