For credit-card issuers, lending to so-called subprime borrowers has become a revenue driver since the Great Recession.
Nearly 50 million Americans, including more than 30 million millennials, have poor credit and are considered "deep subprime consumers," according to the annual Consumer Credit Card report by NerdWallet, a personal finance website.
"There's a big difference between a credit score of 600 and 800," said Sean McQuay, a credit card analyst at NerdWallet. "Consumers with excellent credit have access to the best loan terms and lowest insurance rates, as well as the most options. It's the difference of thousands of dollars in interest fees per year."
It's no secret that subprime borrowers face more expensive credit terms. While the average annual percentage rate for all borrowers is 18.2 percent, those with credit scores below 630 are charged 22.2 percent on average, according to McQuay.