[nomorelurker]

I don’t understand the premise of the whole thing. As I understand it the CC companies run a credit report see that someone’s credit may have deteriorated and then raise their rates. That seems like nothing more than making the situation worse by making it that much harder for them to regain good credit.

[Jacquerie]

The CC company takes on more risk with low credit score customers. Such customers have a higher default rate and thus should pay more. Same thing with mortgages. Being casual with debt repayment is costly.

[ThisLittleLightofMine]

http://www.consumersunion.org/campaigns//learn_more/003484indiv.html

Freezing your credit files would stop them cold. No more checks on your credit. I think this is brilliant.

[mefistofelerevised]

Right. “ You owe too much money and are a risk so we are raising your interest rate, even though you have never made a late payment, so you owe more money and will never get out of debt.” Great logic!