Lloyds TSB credit card interest rate increase

Paul_Herring

BigDave81 wrote: »

Yes ok there is that but still someone who uses their credit card and pays in full every month paying no interest charges would not be deemed a good customer by the credit card company

You're still conflating "good" with "profitable." To take it to an extreme, someone carrying 15K on a card from month to month, and simply paying the 'minimum' (read - mostly interest) is certainly not what would (in the current economic climate) be called a 'good' customer, since there's the risk that they might default on the debt, more so because they're not apparently making an effort to clear the capital. Compare that to (again extreme) someone spending 15K a month and clearing it off every month.

as they are making no money from them.

Yes they are. Not as much as from the ones paying interest on rolling balances perhaps, but if money is being spent on the card, money is being made by the card companies.

Engineer1

I telephoned halifax again yesterday and asked to be put through to the department that cancels your credit card. Once through to them they were very nice and apologetic about the rate increase and asked if they brought the rates down would I stay with them. Result.:j