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Note how I said nothing about limiting lending to borrowers with no credit risk (that's impossible to start with) Indeed I specifically mentioned: >You're con
by johngladtj 3y ago
Note how I said nothing about limiting lending to borrowers with no credit risk (that's impossible to start with)
Indeed I specifically mentioned:
>You're confusing accepting the risks and cost of some defaults with desiring the defaults.
Defaults are always a bad thing, and those fees don't make up for it because there are costs involved with collecting from defaulting borrowers, if you can even collect in the first place.
A company whose business model involves hoping their customers default will very quickly go out of business.
- svnt 3y agoYour conception of this seems incredibly basic for all you’re going around telling others they don’t understand. There is a wide range of profitability of debtors and in unsecured loans such as credit cards people who pay their obligation monthly are not appreciated, because they are money losers for the credit card company. Credit card companies want people who carry a balance every month and then do everything they can not to risk their credit rating. Those are the ones paying hundreds of dollars a month in interest and covering their balances multiple times over. I’d love to see real profitability on clients who ultimately default on credit cards. I bet there is a large class of them that are profitable because of the long slow struggle making minimum payments and covering fees before they ultimately default. I’d also bet that class is among the most honest and hardworking you’ll meet.
- johngladtj 3y agoCarrying a balance does not mean someone is in default.