Why Do Unsecured Credit Cards For Bad Credit Have Higher Interest Rates

Usually, an applicant with a bad credit score doesn’t get approved for a good credit card. Even if you get approved for a credit card, you wouldn’t get one of the best cards. Plus, the interest rates that you would have to pay will be very high. Unsecured credit cards mean that you don’t need to deposit money or pledge collateral to receive a line of credit. So your credit card approval will solely depend on your credit history and credit score.

Having a bad credit score will indicate that you haven’t been credit responsible in the past. This is why lenders will be reluctant to offer you a credit card. But having a bad credit score doesn’t mean you won’t qualify for any credit card. If you are looking forward to getting the best credit cards, then you would have to have a good credit score.

Additional Reading:Can I Get An Unsecured Credit Card With Bad Credit