[Unlikely Hero]

The problem with this article is that the credit card companies raise rates not just for penalties, but also unilaterally. That is, for the “economic conditions.” Thus many are punished even if they did not violate the terms of the original contract. The credit card companies simply amend them at will.

They aren’t inherently evil, but bad things can happen when you rely on them too much. And the credit card companies are shooting themselves in the foot right now. They are going to have a great many more defaults as a result of the interest surges, and good luck to them collecting all of that.

[Obadiah]

Thus many are punished even if they did not violate the terms of the original contract. The credit card companies simply amend them at will.

I hear what you are saying and agree with your sentiment, but technically credit card companies do not violate the terms of the original contract as the signed contract states they reserve the right to change interest rates at whim, or ay least with some minimal amount of notice.

[Elle Bee]

they also have a nice self fulfilling business model

for example they open and offer a $10K credit line

You don't use the line or don't carry a balance .. then they reduce the line ... thereby reducing your credit to debt ratio

then use that change in debt ratio (credit score) to raise your rate

It's not pure serendipity

.