2007-07-05 18:06:27 · 6 answers · asked by sini b 1 in Business & Finance ➔ Personal Finance
Making lots and lots of money
2007-07-05 18:12:26 · answer #1 · answered by Anonymous · 3⤊ 0⤋
They charge you 18 to 21% interest. Why not? They are not just charging the credit card users, they also charge the retailers between 1 to 3% on all credit card sales. Some banks even charge card holders annual fee. It is a profitable business.
As soon as you max out your limit, they will increase it. The more you spend, the more money they will make.
2007-07-05 18:12:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
PROFIT! And LOTS of it! Banks rake in BILLION$ in profits from credit cards every year even after writing off a ton of uncollectible accounts.
Right now, banks are getting their money for less than 5%. Then they turn around and hit you up for double that if you're a GREAT credit risk and 5 times that if your credit is weak.
They also hit the merchant that accepts the card up to 5% of the total invoice.
If you pay late they hit you up to $39.00 in late fees.
Bounce a check for payment of the bill and kiss another $39.00 goodbye.
Run over your credit limit, even by a dime and that's another $39.00 for them.
Some even have the balls to charge an annual fee for the privilege of raping you with interest and other fees.
2007-07-05 18:33:04 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Same reason the banks love to give overdraft accounts. The branch I managed made enough money in overdraft fees to pay everybody in the branch, the lights all the fees and still had a profit. Thats just what we collected. The rest we wrote off as a tax break. Anything else we did, loans, Cd, etc was gravy.
2007-07-05 18:42:12 · answer #4 · answered by financing_loans 6 · 0⤊ 0⤋
They make tons of money on interest charges.
2007-07-05 18:21:52 · answer #5 · answered by Behaviorist 6 · 0⤊ 0⤋
they make money off of the interest and fees that they charge you
2007-07-09 17:21:21 · answer #6 · answered by amaya7 5 · 0⤊ 0⤋