If you have good credit you’re more likely to be eligible for a credit card as opposed to if you have bad credit and therefore bad spending habits. If you have bad spending habits you may go over and will have to pay the banks more money, so why aren’t they more interested in those with bad credit?
In: Economics
One thing that you may not be aware of is that merchants have to pay a transaction fee to accept credit cards. Typically, the fee is 3.5%.
This means that, when more people have good credit and use their cards wisely and responsibly, more people are buying goods on their credit card and giving the card issuer that sweet 3.5% fee.
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