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> and the credit card company sits there hoping you give in to temptation and actually use the line of credit it represents, at which point they charge you usur
by nkrisc 4y ago
> and the credit card company sits there hoping you give in to temptation and actually use the line of credit it represents, at which point they charge you usurious rates and distribute part of their loot to all the other poor schmucks they're conning.
It is kind of grim when I stop to think about how the probably several thousand dollars in cash-back bonuses I've received over the years of never paying a single cent of interest on my credit cards is probably subsidized by the people who do fall into this.
- Existenceblinks 4y agoI believe, by design, it's subsidized by production of incentives of spending more in general.
- wh0knows 4y agoMost of the money made by credit card companies is from the transaction fees paid by the merchant. Credit card companies would still be immensely profitable without receiving a cent of interest. [Edit] This was my understanding but some fact checking on Google proved the majority of income is from interest payments.
- xur17 4y ago> This was my understanding but some fact checking on Google proved the majority of income is from interest payments. Yeah, the data I have seen says that 2/3 of the income comes from interest payments, 1/3 from tx fees.