Credit Report Inquiries

• It is no secret to a credit card company that a person has a bad credit score. This is because credit card companies will often make inquiries into people's credit reports, looking for individuals who meet their requirements for new customers. While some credit card companies attempt only to recruit customers with good credit, others aim to make a profit from providing accounts to people with poor credit.
  
  

Outdated Information

• In some cases, a person may mistakenly receive an offer for a credit card from a company that is using outdated information. A person's credit score changes constantly, as new information is added to the report. If a credit card company was using old information, the offer may not apply. An offer received in the mail is not a guarantee that a person qualifies for a credit card -- rather, it is only an estimate of the person's qualification.
  
  

High Interest Rates

• Many credit cards charge customers high rates of interest for taking out loans. Customers with good credit, who have a demonstrated history of paying back loans on time, are generally offered good rates, as the company can be reasonably certain that the customers will pay back all loans on time. However, a person with bad credit is a higher-risk, higher-return customers. Because he can be charged higher rates of interest, it potentially makes him a more profitable customer.
  
  

Fees

• When a person pays back a credit card bill late, he is automatically assessed a fee, usually around $35 for late payment. In addition, the person may accumulate other fees, such as for going over his credit limit. These customers, who often have bad credit, can often be lucrative for credit card companies, as they can end up paying far more money in fees and punitive interest rates than the amount of money they originally borrowed.