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Why do unsecured credit cards for bad credit have higher interest rates?

Why do unsecured credit cards for bad credit have higher interest rates?

When creditors provide unsecured credit to those individuals with bad credit, the credit issuers face a greater risk of default than they do with customers with a good credit history. To cover the losses they predict from high risk customers, creditors charge them  higher interest rates and fees. This is an important reason to build and maintain good credit. You will be able to borrow money, when necessary, at the lowest rates available.

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