“The moral of the story is that the high interest is fully explained by the riskiness of the customers.”
LOL, you have no idea what you are talking about.
C has been raising rates on people, “due to current economic conditions”. Not risky credit customers.
Due a youtube search and a google search to see what’s going on.
The calculations you present are only relevant for poorly managed financial companies. They assume that the CC companies can’t pick deselect risky credit card users. They can do this. But they haven’t, so now they are punishing good customers by raising rates to ridiculous rates...not 7,9, 11,,,,not even 14 but 27%.
Again poorly managed companies. The same one’s that were bailed out. They can raise it to 45% for all I care, my modest balance now gets 3.9 on a preferred card.
C is going bankrupt and poor business is the reason. Attempting to make your quality customer pay 27% because they lend to any shmo is not my problem. But it’s still poor business.
Happy Bankruptcy to them at C.
CC companies charge high rates --- 27% you mentioned ONLY the risky customers, namely, those that have failed to pay on time.
"Due a youtube search and a google search to see what’s going on."
People whose knowledge is derived only from Internet searches should not be laughing at other people. Open a book on finance --- any book --- before you continue to spew nonsense:
"The calculations you present are only relevant for poorly managed financial companies...CC companies can’t pick deselect risky credit card users. They can do this. But they haven’t, so now they are punishing good customers by raising rates to ridiculous rates...not 7,9, 11,,,,not even 14 but 27%."
You know, that these statements are silly you could've learned even on the Internet. Apparently, even that you refuse to do thoroughly.
I've got nothing more to add. Have a good day.