These credit cards still typically have very low credit limits initially – anywhere from $200 – $500 to start – and they still charge the maximum amount in fees to start, so you’ll also have to deal with an opening balance before you make your first purchase. While the fees will not consume your entire credit line, from the moment you make that first purchase, you’re locked into that high interest rate. At 79% APR, that means for every $100 you spend, you’ll pay back an additional $79 on that debt in the course of a year. These interest rates are entirely legal under the new credit card laws as long as they are prominently disclosed in the terms and conditions of the credit card offer.

Subprime credit card companies know that most people won’t sign up for a credit card that has such a high interest rate, but they are counting on the fact that most people won’t read the terms and conditions. Instead, they tout your pre-approved status in the invitation letter, and point out the reduced fees and increased purchasing ability without ever mentioning interest rates. It’s only when you look at the fine print that you realize the interest rate is more than double most subprime rates of the past.

If you have the money to pay off the initial fees and the additional interest charges, a secured credit card may be a better option. In addition to providing an opportunity to establish a solid repayment history, secured cards offer the added benefit of establishing a savings or money market account that can help your finances grow. If you don’t have the money to pay off the initial fees, one of these subprime credit cards can quickly wreak havoc on your credit scores, as any charges that you make on the card will accrue interest that will make it difficult, if not impossible to pay off the charges and keep your available credit ratios within acceptable levels.

If you’ve had credit problems in the past and haven’t opted out of pre-screened credit card offers, chances are good that you have, or will soon be receiving those ‘preapproved’ offers from various subprime credit lenders. Don’t be fooled – always read the terms and conditions before you sign up, and don’t let subprime credit card companies put your efforts to improve your credit scores at risk.

Reason Number One: You are Moving or Plan to Move in the Near Future

If you’re planning on moving into a new apartment, problem credit can often cause unforeseen difficulties and increased expenses. Most apartment managers now run credit reports when you fill out an application for a new apartment. This can mean that you’ll be turned down for rent in more reputable apartment complexes, leaving your options for suitable living arrangements limited at best. If you are accepted into the apartment complex, be prepared to pay a higher deposit than most renters – and you may or may not get your deposit returned at the end of the lease period, depending on the terms.

Poor credit scores can also cause difficulties with your utilities. Electric companies, gas companies and phone companies almost always check your credit history, and a poor credit score can mean deposits upwards of $200 or more. This can quickly add up to an unaffordable expense if you’re trying to move for financial or budgetary reasons. If you don’t have the cash on hand to pay the exorbitant amount charged for deposits and connection fees, you may find you can’t afford to move at all, since utilities are a large part of what makes any residence livable. And if you do manage to pay the deposits, don’t expect a refund; some companies will apply the deposit to your balance after several months of payment. Others will hold the deposit as security against your final bill. But rarely will a utility company issue a refund check for a deposit, unless you are turning off the service and have a positive balance.

Reason Number Two: You Plan to Look for a New Job

Unemployment is at an all-time high, and new jobs with decent benefits are becoming more scarce throughout the country. If you are one of the many recently unemployed due to company layoffs and closings, a poor credit score may put you at the bottom of the pile when it comes to job applicants.

More and more, employers are looking at the credit of potential employees when making hiring decisions. Poor credit may put you out of the running for a new job, even if you are highly qualified in other ways. Of particular concern, if you work in management or finance, a poor credit score may be seen as a direct reflection of how well you would manage company funds.

If your current position requires a security clearance, you may find yourself suddenly out of job if your credit scores fall too low and you are classed as a security risk.

Job seekers can give themselves an extra advantage with a clean credit history and strong credit score. Whether accurate or not, your credit history is seen as a gauge of how trustworthy, responsible, and reliable you will be in your new position. If you take the time to clean up your credit score before you start your job search, you may find more opportunities for employment.

Reason Number Three: You Plan to Buy a House/Refinance Your Mortgage

While the banks are not doling out home loans at the levels seen earlier in the year, home buying could prove an attractive option for those who could not afford home prices seen just a few months ago. With the housing markets weakening, many first-time buyers could be in for an attractive first mortgage if they have good credit scores. Interest rates are low, and with foreclosures on the rise, a couple with an average income for their area may be able to afford a larger or nicer home than they would have when the housing market was booming.

If you’re currently a homeowner and thinking of refinancing, having a good credit score can see your mortgage payments drop dramatically, saving you thousands of dollars over the life of the loan. While not everyone can qualify for refinancing, having a good credit score means that you’ll have more options than most people who are looking to downsize their mortgage payments in the long-term.

Those who have problem credit are not likely to find a home loan available for any price in the current market. With so many lending companies burned with the so-called ‘sub-prime’ lending spree, the market for loans available to buyers with less than perfect credit has diminished dramatically. So even if you have the income for a new home, a poor credit history may prove to be an insurmountable barrier to the American dream.

There are many reasons to consider credit repair as a solution to your current credit score problems, but if you fall into one of the above categories, you may want to take a closer look at procuring credit repair sooner, rather than later. With the amount of money you save in reduced deposits, increased job security, and lower interest rates, the amount you spend on credit repair services will be a drop in the bucket, comparatively.