Why are credit cards for people with bad credit so difficult to get?
Firstly, because of the credit squeeze, banks, financial institutions and credit issuers in general, are looking much closer at applicant's ability to repay. If this is OK, they examine his/her credit history. If there's even the smaller adverse recording, it means that the possibility for default exists, and the application is denied.
Secondly, many people with bad credit, applying for credit cards, are overcommitted. Their ability to repay is on existent. The level of debt they carry already makes it impossible to add another financial burden.
Credit cards companies and issuing banks know very well, in cause of default they stand to lose money - bankruptcy or Chapter 11 of the card holder, are not what makes profit of the lender going higher.
