Higher risk, probably, because they probably can't pay their bills in full. But, a combination of the credit line and interest rate on the card should make up for the extra risk the bank takes on.

This does remind me of the one case I have heard of there being a disconnect between the bank not treating you like a good customer and you actually being a good customer is in the case where you've got a person who never carries a balance (and hence is not a top performing customer) but has a very valuable bank account.

So you'd get a situation where you'd have a guy who had hundreds of thousands of dollars on deposit with the bank, versus some guy with 2 cents to his name and a high balance on his credit card. Excluding other factors, if they both lost their cards and needed a replacement, they guy with the high card balance would get one sent to him immediately by courier, whereas the guy with the great banking relationship who doesn't carry a balance would get one overnight or in the regular mail. I do know that banks have been working on this; both of these customers are "good" and ideally would be treated as such by the credit card side of the business.

d