How Credit Card Companies Take Advantage of People Who Can't Pay Off their Debt

posted by   sgidia786 (0)   7 months ago (all-about-mutual-funds.blogspot.com)

It has oft been said that the reason credit card companies raise interest rates for the slightest delinquency is because of the increased risk. It does make sense to charge people with lower credit scores a higher interest rate when the customer is acquired—higher risk does require a greater yield—but once the customer has been acquired, does it make sense to charge the maximum default rates of 30% or higher, even if someone is only a little late on 1 payment? And if someone is paying late because they have run into financial trouble, jacking up the interest rate to usurious levels would seem to increase the odds of not getting paid at all. http://all-about-mutual-funds.blogspot.com/2008/01/how-credit-card-companies-take.html