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Comment on Americans Are Sharing The "Normal, Everyday" Aspects About The US That Are Actually Dystopian, And I Can't Believe We Tolerate Some Of These

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return2ozma@lemmy.world ⁨3⁩ ⁨months⁩ ago

Yes, it’s a real thing. When I worked at a major bank the customers that would pay in full monthly on their cards were considered the “bad” customers. Those that paid only minimum and got hit with late fees were our “good” customers.

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Omgpwnies@lemmy.world ⁨3⁩ ⁨months⁩ ago
From their perspective, they make nothing off of people who don’t pay interest or fees. Thus, it only makes sense that the “best” customers are the ones carrying a balance, because they’re the ones who generate profits.

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- surewhynotlem@lemmy.world ⁨3⁩ ⁨months⁩ ago
  They still make a percentage of each transaction. But it sure isn’t 18% interest
  
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  - nilloc@discuss.tchncs.de ⁨3⁩ ⁨months⁩ ago
    18? Ha, it’s closer to 30% for lots of us. They only loads it to the teens for people who aren’t carrying balances.
    
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thrawn@lemmy.world ⁨3⁩ ⁨months⁩ ago
This part is true but is separate from credit scoring. Banks don’t like unprofitable credit card customers.

But it’s actually good for your credit, and they’ll keep approving you as long as you’re not churning. Churning can look like the lead up to bust out fraud too

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