A while back, a writer (whose name and story details I unfortunately don’t remember) was researching the credit card business and tried to figure out how card issuers decide which customers to pursue. To this end he created a series of fake personas ranging from an affluent straight-arrow who always pays her bills on time to a white-trashy guy with impulse control issues and a history of multiple defaults and late payments.
The findings? Impulse-control-issues guy was deluged with card solicitations while straight arrow’s mailbox was relatively empty. Credit card companies, it turned out, make most of their money by extending credit to people who will be frequently late (thus generating massive late fees) and who are likely, when they do make a payment, to choose the minimum and let their balances accrue at double-digit interest rates. Customers who pay off their modest monthly balance are relatively unprofitable for the card companies and are therefore not as attractive.
Source: News To Me