how do some credit card companies to people with the worst of credit and no job?

Question

i dont understand why some credit card companies will grant credit lines to people with horrid credit, no job, no bank account. they have to know that in many cases they will take a loss.

Answer 1

they just put a low limit on amount of credit, and charge ridiculously high interest, which covers their losses.

Answer 2

They are systematically setting these folks up to fail. They know that the folks to whom they are extending the credit have limited resources. They offer them a low credit limit - $200, for example. They charge high interest rates - I've seen some up to 25%. Then they also charge monthly or yearly fees.
I had a client once when I was credit counseling who said that she applied for one of these suspect credit cards. Her limit was $200. They charged her an activation fee of about $75. They also charged her a maintenance fee of about $50. By the time her card got to her, it already had $125 charged to it and she didn't know. She purchased some small things with the intention to pay the balance. When the statement came to her in the mail, she found that she was over her limit. So, the CC company was able to charge her over the limit fees plus outrageous activation charges. She wanted so badly to keep this card and get her credit back on the right track, that she actually borrowed the money to pay off the card. She still has it.
True story!

Answer 3

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 4

Most of those people getting approved are for extremely small credit lines...and they charge these people over 20% interest. It always works out in their favor.

Answer 5

Check this website. You will find very valuable and useful information on credit issues:
http://www.zelok.com/creditrepair...