Your ‘reward’ is less than the transaction fee they charge the vendors. You use your cards a lot, they make a lot of transaction fees. As long as you never miss a payment, you won’t get the interest fee, but miss or be late with just one, any they will charge you interest on the full balance, every month, until you have a $0 statement. That’s fantastic for them, but they’re perfectly profitable on just your transactions.
Your ‘reward’ is less than the transaction fee they charge the vendors.
And that has literally nothing to do with customers’ credit scores/reports, and my point was to rebut the assertion that credit scores are intended to be measurements of how ‘profitable’ a borrower is, so it’s meaningless to bring up this irrelevant fact I already knew.
Your ‘reward’ is less than the transaction fee they charge the vendors. You use your cards a lot, they make a lot of transaction fees. As long as you never miss a payment, you won’t get the interest fee, but miss or be late with just one, any they will charge you interest on the full balance, every month, until you have a $0 statement. That’s fantastic for them, but they’re perfectly profitable on just your transactions.
And that has literally nothing to do with customers’ credit scores/reports, and my point was to rebut the assertion that credit scores are intended to be measurements of how ‘profitable’ a borrower is, so it’s meaningless to bring up this irrelevant fact I already knew.