The poor are the last people a money lender would be enticed to give out money. The reason is simple, all loans are given out in a bond of trust ,especially on part of the lender that in due time he would be repaid in full in principal and interest payments. Loan failure could be a disastrous consequence for the lender.

If there is even a slight suspicion on part of the lender about the financial viability of the borrower, the loan simply wont be given to them.  No wonder , the majority of the world’s population which are actually considered poor are deprived of any such loan facilities to them.

Whether it be farmers in Kenya , small craftsmen in India or poor people with meager incomes anywhere in the globe,  they all are deprived of credit  due the perception about their inability to repay their loans by the banks.

Leaving them to resort to taking loans from loan sharks that may charge really exorbitant interest rates , and failure to pay them back maybe met with dire consequences.

But recent successes in micro credit services such as the Grameen Bank have shattered the myth that the poor are not credit worthy. in fact Grameen banks has almost a ninety five percent recovery rate from the small loans it disburses in rural Bangladesh , mostly to widows and other women only households. The big banks are steadily awakening to the fact that people with poor credit loan history are actually very credit worthy after all.

This has actually led to a paradigm shift in the financial industry around the world. Not only is giving out loans to the poor profitable but the recovery rate is far better than recovery on corporate loans.

In face of the growing popularity of extending credit to the people with poor credit histories Credit Cards for Bad Credit History are especially in high demand, although the premium charged on them maybe a bit higher but people who may have been previously deprived of credit can now avail credit services.