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Even though people may have bad credit scores, they may still want to use a credit card or apply for other types of loans. Subprime lending is a facility that allows people to have credit facilities but at very high rates of interest as compared to standard credit. The reason for these high rates of interest is the higher risk the lender has to undertake. There are higher chances for the borrower to default on the loan, than a person with a higher credit score. However, poor credit credit cards have their advantages to the credit card companies, due to their high rates of interest. After the recent credit crunch in 2007, many new poor credit credit cards became available in the market. This led to higher competition between companies offering these cards; forcing them to offer their customers more attractive interest rates.