Bad credit

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sunil

Joined: 07 May 2009
sunil's page
Posts: 41

2 Magic Points

Subject: Bad credit

Mon Aug 17, 2009 3:09 pm

Why do unsecured credit cards for bad credit have higher interest rates?

Sven

Joined: 22 Jun 2009
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Posts: 63

1596 Magic Points

Mon Aug 17, 2009 5:08 pm

Because your credit is bad.

fireyone

Joined: 26 Feb 2008
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Posts: 4500

8812 Magic Points

Mon Aug 17, 2009 11:56 pm

Sunil,

You need to look at it from the lenders point of view. If you have bad credit or sometimes even no credit then you are a very big risk to them. Setting higher interests rates is what most companies do until you establish your self as a good paying client. The better your credit gets the mroe you will be able to shop around for better rates.

jassica

Joined: 13 Sep 2009
jassica's page
Posts: 68

14 Magic Points

Sun Oct 04, 2009 6:00 pm

When creditors provide unsecured credit to those individuals with bad credit, the credit issuers face higher financial risks. So, to protect themselves, creditors set higher interest rates and fees for those with bad credit.

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