Anthony Orlando, associate professor of finance, real estate and law, says second-chance credit cards can offer borrowers an opportunity to rebuild credit, but they also carry significant risks, including high interest rates and fees that can trap users in cycles of debt. Lenders are willing to extend these products because, “Remember, the credit card company isn’t stupid,” Orlando cautions. “They know you’ve had a bad experience in the past. They’re prepared to make money off your mistakes if it happens again."

This article was originally published by WalletHub.com on May 7, 2026.