When you open a credit card your revolving line is often bundled with others and sold into a marketable security, the same as mortgages, auto loans, etc. The card issuer earns a fee for creating the pool of accounts, and is paid for managing the accounts.
To make an attractive security the issuer needs a mix of customer characteristics. Customer with high credit scores help lower the average default risk and they generate some merchant fees. This is useful even if you don't pay finance charges (finance charges include more than interest), but others in the pool will.
Separately, Chase will receive incentives from VISA for meeting targets for number of accounts opened, aggregate transaction volume, etc.
This. Chase Issuance Trust has billions (not an exaggeration) of asset backed securities linked to credit card receivables floating out in the markets. They have a 1.1 billion dollar deal coming later this month. I think people underestimate how much money Chase makes on this.
I think people on this board forget that the average american carrys a balance month to month. Average utilization on most of these trusts are around 15%. JP Morgan Chase's profit margin is about 27%. Just because we are winning at this game doesnt mean Chase isn't winning as well.