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
They have to balance the benefits of the bad credit person incurring additional fees against the risk that the person doesn’t pay bills and/or declares bankruptcy, which causes a large loss for the bank.
Targeting exclusively bad credit people is leaving money on the table from people with good credit. People with good credit are still going to have checking/savings accounts, occasionally incur fees, etc. It doesn’t make sense to give up on this market just to pursue the riskier market.
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