CARD Act Rules That May Help Subprime Credit Card Borrowers–Will They Make Bad Credit Credit Cards For Affordable?

New rules extending from the CARD Act may put subprime credit card borrowers in a better position when they are attempting to acquire a bad credit credit card for the purposes of spending and repaying on credit or simple bad credit repair. Obviously, there have been numerous credit cards recently advertised to a variety of consumers, one of which being the subprime borrowers, but new rules that are hoped to be set in place at the end of 2011 could help keep fees associated with these types of cards down as some consumers who may be attempting to simply improve their bad credit score have been weighted down under these costs before they even get their card.

It’s understandable that there are borrowers who worry about getting an affordable credit card, especially when a bad credit score is involved, and many may turn to a secured credit card if bad credit repair is their only goal. However, consumers who simply may have found themselves in a bad credit position and are financially able to handle responsibilities associated with using a credit card can often find these bad credit credit card offers, which may also come at an affordable rate, in some cases. Yet, one of the main concerns surrounding bad credit credit card offers has been the fact that many lenders will impose fees before a card is received, which obviously is problematic for bad credit borrowers.

According to an article on, these changes to the CARD Act rules relating to these bad credit credit cards will target, “…fee harvester cards [which] are aimed at consumers with bad credit. These cards charge fees before an account is even opened…including for the application itself.” Understandably, a bad credit borrower having to face these excessive fees will start out in a difficult position as someone who may simply be looking to repair a bad credit score could find themselves in a situation where they are financially strained because they want to use a card to improve their credit score.

While consumers who are offered these bad credit credit cards must properly spend and repay within their financial ability, changes on these first-year fees, which are set at 25% of the credit card limit, will lower the amount that consumers must pay when they are a subprime borrower looking for a credit card option. Essentially, these new changes in the CARD Act are hoped to bring more transparency to the credit card industry and offer more information to cardholders beyond what is already available thanks to changes that have already been set in place.

Yet, for bad credit borrowers looking for subprime credit card offers, comparing various options with reputable lenders will also be helpful, and necessary, if a consumer is to find the best deal for their personal situation and future financial goals. While there are some credit cards that will be much better than others, researching all the opportunities that are available can also be a step in the right direction for bad credit borrowers seeking a line of credit.