eli5 How do credit card companies make money out of people that pay their cards in full before the billing cycle and still get rewards?

Question

eli5 How do credit card companies make money out of people that pay their cards in full before the billing cycle and still get rewards?

In: 808

Answer 1

They don’t make money directly from those people; I’ve heard them referred to as “free-loaders.” I’m one of them, because fuck paying interest. But to get anything you need a damn credit score so I carry an extra piece of plastic around with me.