Do credit card companies and other credit agencies make most of their money from the poorest Americans?

Question

Just curious. It seems like they would collect most of their late fees, interest, and so on from people who can't afford to pay their bills.

It's not necessarily a bad thing if the answer's yes, since the poor might be most in need of emergency loans.

Answer 1

Yes Because Most poor people pay the minimum payment each month and then they get charged a finance charge and most companies have a high interest rate so people who are poor. And Usually What happends is they get charged a late fee if they dont pay it in time. Cause they want to make to make money and people put them self in debt cause they dont have money to spend

Answer 2

You can't make a lot of money from poor people because they don't have much, and the  poorest American don't have credit cards, and some don't even have bank accounts.

They make their money on late fees from careless people who pay bills late, and people  who do not delay purchases until they have the money to pay for them.These people exist at all income levels.

Only a very small amount of credit card debt is due to "emergency"  loans.

Answer 3

They make their money off the people who do not pay their bills in full each month.  Regardless of their economic status.

Answer 4

This is not the case. I have a credit card and they don't charge me ANY interest. There's a site you can go to that tells you exactly what kind of credit cards are best for your financial status. Say if you have really bad credit or no credit at all, you would want a credit card that charges low or no interest.

So the answer to your question is no. Credit card companies make most of their money off of people who don't do any research. It doesn't matter if your rich or poor, you can still avoid credit card debt if you do a lot of research on these things.