Re: I have $49,000 worth of credit

4thKingdom | Personal Finance Board | Join Free

Posted by Sir Four at 1:05pm Jul 28 '09
You must sign in to send Sir Four a message

There must be some actuarial statistics showing they can profit by raising the limits. A formula must weigh the risk of default against the gains from interest. But I am surprised they've continued raising limits in these times. My credit card company has practically tried throwing money at me, sending me blank checks "to use however I want" which are really just cash advances that will ultimately get slapped with high interest. But man, in the wrong hands those must be dangerously tempting.

I've had only the one credit card for over a decade, until very recently (I took a second card for promotional savings). The limit is around $18,000 now. And a comically low $1,300 on the second card.

As to your ethical question, I do agree that any formula that can accept X number of people going into bankruptcy for you to maximize your profit is unethical, in no uncertain terms. But free market purists will argue that failure to maximize your shareholders' return on their investment is unethical.

There are 5 private posts in this thread. You need sign in to read them.

Below are the public posts in this thread:

Note that there are no ads here. Just intelligent and friendly conversation. We keep the spam out, the trolls out, the advertisers out... 4K is just a low-key, old-fashioned site with members from around the world.
This community began in 1998, and we continue to accept new members today.

If you're looking for a richer experience than Facebook or Twitter, this is it.

Debate & News Extreme Help & Advice Lifestyle Media & Arts Special Interest