You need to look at it from the lenders point of view. If you have bad credit or sometimes even no credit then you are a very big risk to them. Setting higher interests rates is what most companies do until you establish your self as a good paying client. The better your credit gets the mroe you will be able to shop around for better rates.
When creditors provide unsecured credit to those individuals with bad credit, the credit issuers face higher financial risks. So, to protect themselves, creditors set higher interest rates and fees for those with bad credit.
Because your credit is bad.
Sunil,
You need to look at it from the lenders point of view. If you have bad credit or sometimes even no credit then you are a very big risk to them. Setting higher interests rates is what most companies do until you establish your self as a good paying client. The better your credit gets the mroe you will be able to shop around for better rates.
When creditors provide unsecured credit to those individuals with bad credit, the credit issuers face higher financial risks. So, to protect themselves, creditors set higher interest rates and fees for those with bad credit.