Predatory Lending & Credit Cards for Low Income Earners

Predatory Credit Card Lending

Predatory lending is a type of lending that is characterized by high fees, high interest rates, and unfair or deceptive practices. Some predatory lenders may target low-income earners because they are more likely to have poor credit and may be less likely to understand the terms and conditions of a credit card or loan. Therefore low-income earners may be at risk of predatory lending when it comes to credit cards.

Different Predatory Lending Tricks

(1) Some predatory credit card lenders may charge high fees, such as application or processing fees, which can make it more difficult for low-income earners to afford the card.

(2) Additionally, predatory lenders may charge high interest rates, which can make it more difficult for low-income earners to pay off their balances in full each month, leading to high levels of debt.

(3) Some predatory lenders may also use deceptive practices, such as hiding the true cost of a credit card or loan in the fine print, making it difficult for the borrower to understand the terms and conditions of the credit.

How can poor income earners be careful?

It is important for low-income earners to be aware of these predatory practices and to be careful when applying for credit cards. It’s recommended to compare different options, check the fees and interest rates, and always read the terms and conditions before signing up for a credit card. It’s also good to look for credit cards that are offered by reputable lenders, such as credit unions or banks, which are less likely to engage in predatory lending practices.

In addition, low-income earners can consider secured credit cards, which require a deposit as collateral, these type of credit cards are less risky for the lender and usually have lower interest rates and fees, but also help to build credit history.


Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].

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