Credit Card Rates Near Record High

Due in part to their extension of new credit lines to borrowers with subprime credit scores, many struggling consumers are seeing an increase in credit card offers in their mailboxes.

However, the average interest rate on a credit card now hovers around 14.72 percent, with some rates nearing record levels.

In addition, some cards even charge up to 59.9 percent APR for borrowers who are frequently late on payments. Over the past two years, interest rates rose more than 20 percent, hitting an all-time high last November, CNN Money reports.

Subprime borrowers, who are typically defined as those with a credit score below 620, have likely been suffering from high credit card debt or unemployment during the recession. Those who fall into this category could benefit by taking out a secured credit card, the news source says.

A secured card is tied to existing funds, which means consumers face less credit damage for a late payment than they would with a traditional card.

However, unlike debit options, this money management tool gives users the ability to improve their credit history and work toward receiving lower rates in the future.