Subprime Credit Card

Subprime Credit Card
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A type of credit card issued to people with substandard credit
scores or limited credit histories. These cards will typically
carry much higher interest rates than credit cards granted to
prime borrowers; they also come with extra fees and lower
credit limits.

Subprime credit cards are issued by both major issuers and
smaller financial institutions that focus only on subprime
lending.

The subprime credit card industry has seen some controversy
as accusations of predatory lending practices have been
documented. Predatory lending can lead to a borrower not
knowing the full extent of the fees they are paying; some
subprime cards carry covenants that can cause the interest
rate to spike if a payment is late or the card holder exceeds
his or her limit.

Interest rates on subprime credit cards can run as high as
30% and should be used with great caution by individuals
seeking a source of credit.
(Investopedia)