Bad Credit Agency

Why do Credit Card companies offer credit cards to people with bad credit histories??

Are they that despret for buisness?? A buddy of mine is in over $7,234 worth of debt, unpaid student loans, and recently had to file for bankrupcy. Yet these credit companies wont give up, or go away. They're determined to keep offering him credit, do they see something special in him? I guess they'll have to find out the hard way..

Public Comments

1. It's a game the credit card companies play. They run up a big sum of money owed, and then sell the debt off to a bill collector. The card issuer then gets a wonderful tax credit based upon the difference they sold the debt for and the total amount due. Automatic profits.
2. Because they make more money off of them. Because they are a higher risk customer, they can charge higher interest rate. The person will pay on their cc for a while, the cc will make a nice tidy profit. Eventually the person will default on their card, but often the company has already made enough off of them that they still turned a profit.