There are low limit credit cards available in the market that have been designed especially for people with poor or no credit. But recently there has been a debate going on between the Fed and numerous sub prime credit card issuers regarding the issue whether the benefits offered by such cards are great enough to justify the high fees associated with these cards or not.
Changes Proposed by Federal Reserve Bank Proposal
In May of 2008, the Federal Reserve Bank proposed price controls for sub-prime credit cards. According to these changes, sub-prime credit cards will not be allowed to charge startup fees higher than 50% of the total credit line, but this can only take effect after these changes are passed. The proposal also contains changes regarding the startup fees higher than 25% of said credit line would have to be spread out over a period of one year.
