Consumers With Lower Credit Scores Gaining Attention From Card Companies

Thursday, December 1st, 2011
Updated: December 1st, 2011
The content is accurate at the time of publication and is subject to change.

Credit card companies are looking to drum up new business among consumers with less-than-stellar credit histories. This is a change from the recent past, during which card issuers focused their attentions only upon individuals with near-perfect credit.

After months of making special efforts to court only the most creditworthy consumers, some credit card issuers are changing their tactics and going in pursuit of customers with mid-range credit scores and imperfect credit histories. In fact, data indicated that there were more new lines of credit issued to consumers with spotty credit histories than to those with excellent credit ratings.

TransUnion, one of the three major credit reporting agencies, revealed that 25.2% of new credit card accounts were opened by individuals with a credit score of 700 or lower, an increase from last year’s figure of 23%. Essentially, what this means is that a large amount of credit cards – nearly a quarter of a million – have been doled out to consumers who have had some past struggles with credit.

This new availability of credit for financially-challenged consumers marks a sea change in the industry, as TransUnion reported that last year close to $8 million consumers had abandoned the use of credit, either willingly or because they had their lines of credit revoked. Because during the previous few years opportunities have been scarce for consumers to open up new lines of credit if their credit report indicates any past struggles with credit, many people are currently clamoring for a new account.

Rather than abandoning their pursuit of top-tier credit rated consumers, card companies are instead making their offers for the especially credit worthy increasingly enticing, by amping up rewards programs, extending teaser promotions and slashing interest rates. According to Synovate, a market research firm, around 80% of new card offers are targeted towards consumers who carry top credit scores.

However, data indicates that those upper echelon creditworthy consumers aren’t necessarily in the market to open up new accounts, as they already have plenty of credit available to them.

“If financial institutions are going to grow, eventually they’re going to have to dip their toes into the water of riskier borrowers,” claims one financial analyst, according to The Huffington Post.

This entails issuing cards to consumers who are likely to carry a balance from billing cycle to billing cycle and accrue interest charges.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Credit Card Issuers News

Monday, March 4th, 2024

The news that Capital One Financial has struck a deal to buy Discover Financial Services shook up the credit card market, paving the way for Capital One to become the largest nation’s credit card issuer in the country. Capital One, a stalwart in the financial sector and the ninth-largest bank in the U.S., plans to […]

Wednesday, March 29th, 2023

Citi has officially launched its new travel platform with the assistance of, which Citi cardholders can use for earning and redeeming Citi ThankYou points. Citi Travel with will replace the existing City Thank You Travel Center and will offer access to over 1.4 million hotel and resort options, as well as competitive pricing […]

Wednesday, September 14th, 2022

An alliance between American Express and i2c is now focused on offering payment products in the American Express network through fintech companies. Amex announced its collaboration with payment and banking technology company i2c in April this year. The two partnered to create a platform that allows fintechs and financial institutions to launch cards more quickly […]

Wednesday, June 2nd, 2021

Continuing to live in the present reality and the ongoing COVID-19 pandemic, global giants of the financial and credit sector introduce new bonuses for the convenience of their customers. Mastercard, in turn, has announced new partnerships with DoorDash and HelloFresh offering new food and grocery delivery perks to Mastercard World and World Elite cardholders. According […]

Thursday, January 21st, 2021

Walgreens has recently announced its plans to enter the consumer financial services market. To be precise, the second-largest pharmacy store chain in the United States is going to start issuing credit cards and prepaid debit cards under its brand. The main reason for this expansion of the scope of activity is the losses incurred by […]

Best Credit Offer
Surge® Platinum Mastercard®
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Horizon Card Services Group One Freedom Card
Copyright © 2001-2024 All Rights Reserved.

See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.