Credit card companies in the United States offered sub-prime credit cards usually with lower credit limits and charged high fees and interest rates sometimes as high as 30% or more. With slowdown in economic growth in the United States in 2002, the default rates for sub-prime credit card holders increased, compelling sub-prime credit card issuers to reduce or cease operations.

In 2007, many new vendors emerged making the market more competitive, forcing issuers to make the cards more attractive to consumers which resulted in the interest rates being available as low as 9.9% but even then in some cases it goes as high as 24%.

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