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Unsecured Poor Credit Credit Cards – No Low Interest Rates Out There

Posted on | November 11, 2009 | No Comments

Getting an unsecured poor credit credit card is likely to mean that you are going to have a very high interest rate there are almost no low interest rate bad credit credit cards available at the current time. After the credit crisis credit card companies have realized that they can not offer low interest rates to bad credit borrowers.

Bad credit borrowers are often not paying their credit card payments and trying to settle for a much less amount than the balance of their current card. Unfortunately for these credit card companies this unsecured debt is something that borrowers do not have to pay back. The credit card companies can kill these individuals credit scores but they can not demand the money back.

Unlike a mortgage or car, the unsecured debt of a credit card is something that borrowers can just forget about but it will end up ruining their credit score for the next several years. Many borrowers are calling these credit card companies and settling for a much lower rate which is causing credit card companies to be in a bind.

These credit card companies can accept a much lower amount of money that is being presented to them or they can continue to wait and hope that these borrowers eventually get money to pay off their debts. Unfortunately many of these borrowers are unemployed and it is highly unlikely that they will ever build a pay the full credit card debt that they have.

With this in mind, this is the reason that credit card companies are now putting very high interest rates on credit cards that are being applied for. If you have applied for a credit card over the last six months you know that the interest rate that is offered to you is much higher than it has ever been in the past. Those days of 0% introductory APR are no longer available. It is more likely that you will get an introductory rate of 12% and then the rate will jump to 20% after that period is over.

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Author: Alan Lake

Category: Bad Credit Credit Cards

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