 |
Definition of 'Subprime Credit Card'
A type of credit card issued to people with substandard credit scores or limited credit histories. These cards will typically carry much higher interest rates than credit cards granted to prime borrowers; they also come with extra fees and lower credit limits.
Subprime credit cards are issued by both major issuers and smaller financial institutions that focus only on subprime lending.
|
 |
Investopedia explains 'Subprime Credit Card'
The subprime credit card industry has seen some controversy as accusations of predatory lending practices have been documented. Predatory lending can lead to a borrower not knowing the full extent of the fees they are paying; some subprime cards carry covenants that can cause the interest rate to spike if a payment is late or the card holder exceeds his or her limit.
Interest rates on subprime credit cards can run as high as 30% and should be used with great caution by individuals seeking a source of credit.
|
-
Reducing the rate charged on your credit card balance is the first step to getting out of debt.
Read More »
-
These loans can spell disaster for borrowers, but that doesn't mean they should be condemned.
Read More »
-
Paying these rates can impact your disposable income and your investment returns.
Read More »
-
-
Search and compare the best checking and savings rates nationwide from Bankrate.com. Click Here!
-
Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.
Read More »
-
Find out why good intentions can put consumers in an even bigger hole than before.
Read More »
-
Follow these steps if you've been ripped off or spot an error on your bill.
Read More »
|
|
