While credit standards are certainly expanding these days so that those who have experienced a bit of financial difficulty in the past can once again gain access to these lines of credit, some consumers may still have problems doing so.
[Related Article: How Can Someone Turn Fair Credit Into Good Credit?]
Consumers with bad credit may face a number of issues when applying for credit cards these days, and perhaps the most obvious is that their application may simply be denied. This is a problem many consumers face, but the mistake that many make is they continue to apply. Doing so actually has a negative impact on their credit rating, reducing their already-low score. Instead, consumers should take their rejection as a sign that they need to work on their credit standing before applying for another card.
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However, in many cases, if you have bad credit, you may still be able to obtain a credit card because of how often lenders are extending credit to subprime borrowers, but there will likely be a number of restrictions on such an account that you have to deal with. For example, you will probably have to deal with a much higher interest rate than consumers who have even fair credit, as lenders use this to make sure they’re getting a more significant return on their investment and better mitigate their risk.