Sometimes I have to wonder how we as a nation tolerate schemes that are designed to bilk those who are less fortunate. It even surprises me that we have a government that bails out people who have invested their money in loans that were designed to fail. We’re a nation where some propose less restrictive guidelines for lenders because they are nice guys who love the consumer. No sooner than the banks get back up on their feet, they turn around and start their shenanigans once again.

Here is what the banks are saying:

Lenders like Capital One and HSBC are jumping back on the subprime credit card bandwagon, saying they are just trying to help consumers out by extending credit to a larger group of borrowers.

But the lenders are also hedging their bets on this new group of subprime borrowers, who will have an average interest rate of around 20%, up from around 17.6% a year ago. Meanwhile the average credit lines remain about the same low-level of $300 to $500.

These are people who may have lost their jobs and fell behind on their payments. People who can ill afford paying a 20% interest rate and who the banks will sucker in to take one of these cards.

There are other options. I would recommend that people get a secured credit card that is backed up by the amount of money you deposit with the lender. Interest rates are usually lower and you can build up your credit score.

Comments welcome.

Source –  Easy Credit Card