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A comment on Why are credit card rates so high?. Parent comment

Re:Why are credit card rates so high? by lxgr on Tuesday April 01, 2025 @07:19PM (#43552313)
> Credit cards are a powerful tool that many people do not use correctly.

If everybody were "using them correctly", issuers would be bankrupt. The fact that they're not should tell you that there's at least one winner other than the never-balance-carrying cardholders.

> Credit card issuers fight to attract those high income bracket spenders.

Correct, and everybody pays for this (very expensive) fight, one way or another. The fact that some people come out ahead does not make them a good deal in the median case.

> And finally, something that's less well known: the folks at the lower end of the income brackets subsidize all of this.

I agree, but as an aside, you might be surprised to find that the author of the article you quote would disagree with you there: https://x.com/patio11/status/1902555603534295115

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Re:Why are credit card rates so high? by plorkyeran on Tuesday April 01, 2025 @08:02PM (#43552509)
It would be a lot less money, but issuers would make money off of credit cards even if every single person in the world paid their bill in full every month. They would distinctly not be bankrupt.
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Re:Why are credit card rates so high? by lxgr on Tuesday April 01, 2025 @09:13PM (#43552847)
They could probably adapt, but they'd have to really streamline their operations. I doubt there would be as many paper ads in the mail, airport lounges, bonus cashback categories etc.
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