Originally Posted by
Boghopper
In fact, one of the amusing facts that emerged from the close look at the industry over the past few years is that internally they refer to people who pay their bills in full every month as "deadbeats".
That was pre-2008. After the banking crisis the regulators and their own risk managers required/encouraged them to even out their ratios with a flight to quality in their borrowers credit profiles.
Given that they are still earning $$ on interchange and are often able to procure points that we value at X for less than X, and/or commissions they capture from partners high quality credit folks are not necessarily not profitable. That said, its likely the people who are best at working the system are a drag on their returns, so logically they will look to cull where needed.
Pigs get fed. Hogs get slaughtered.