Lines of credit were abruptly yanked from consumers with bad credit history during the recession, but there is evidence that such consumers can expect to see more credit card offers in their mailboxes soon.
According to a recent SmartMoney report, lenders are already dramatically expanding credit to subprime borrowers. Since June 2010, credit card solicitations to consumers with less-than-stellar credit have increased by 300 percent.
It has yet to be seen whether this increase in supply will spur American consumers to start spending on credit again – revolving credit has fallen from 27 consecutive months, according to Federal Reserve data. Subprime consumers are, however, showing increased willingness to acquire bad credit car loans and borrow to finance education, according to MSNBC.
While consumers with bad credit history may want to read the fine print of any line of credit they sign up for, the increased supply of subprime loans may mean those in need of car financing may be able to get a good deal and acquire the vehicle they need for their lifestyle.