• return2ozma@lemmy.worldOP
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    5 months ago

    Yes, it’s a real thing. When I worked at a major bank the customers that would pay in full monthly on their cards were considered the “bad” customers. Those that paid only minimum and got hit with late fees were our “good” customers.

    • Omgpwnies@lemmy.world
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      5 months ago

      From their perspective, they make nothing off of people who don’t pay interest or fees. Thus, it only makes sense that the “best” customers are the ones carrying a balance, because they’re the ones who generate profits.

    • thrawn@lemmy.world
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      5 months ago

      This part is true but is separate from credit scoring. Banks don’t like unprofitable credit card customers.

      But it’s actually good for your credit, and they’ll keep approving you as long as you’re not churning. Churning can look like the lead up to bust out fraud too