Quote:
Originally Posted by Cowboy89
Actually it's pretty clear what would happen as a result of this policy.
1) If I were a credit card company I would immediately drop the credit limit of anyone with a balance and medium to low credit to exactly that balance and lower it with every reduction of principal that person makes. Futhermore I wouldn't issue new cards to new accounts without pristine credit history, because credit card debt is unsecured. This isn't really being predatory, it's really protecting your own behind because the only thing that allows the credit card company to give money away that people take decades to pay back without collateral is insanly high interest payments.So basically this removes a credit card from a lot of people's wallets.
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Half the people who have credit cards probably shouldn't have them anyway. Credit companies love issuing cards to people who are poor enough that they get stuck in "minumum payment" purgatory. If credit card companies stop issuing to people with shotty credit ratings, they will be hurting themselves the most as those are also the people who end up paying the most interest over the long haul. People like me who typically pay their credit card debt quickly, aren't really their number one target.