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  • FIRST POST
    • beany_bot
    • By beany_bot 4th Jul 18, 1:57 PM
    • 58Posts
    • 3Thanks
    beany_bot
    Can you have too good a credit profile/history?
    • #1
    • 4th Jul 18, 1:57 PM
    Can you have too good a credit profile/history? 4th Jul 18 at 1:57 PM
    I've always wondered. Let's say for 30 years you had always meticulously paid off your reward CC's in full. Every month. And used the rewards to the max.

    Wouldn't this put off lenders? I mean, you are actually costing them money. They make nothing from you.

    Has this ever happened?
Page 1
    • lisyloo
    • By lisyloo 4th Jul 18, 2:01 PM
    • 22,482 Posts
    • 11,084 Thanks
    lisyloo
    • #2
    • 4th Jul 18, 2:01 PM
    • #2
    • 4th Jul 18, 2:01 PM
    They make money from the fees they charge to retailers, so the anecdotal evidence is that they are falling over themselves for your business with little change that you will default and they'll have to write off your debt or sell it for a fraction of it's worth.
    • madvicker
    • By madvicker 4th Jul 18, 2:03 PM
    • 144 Posts
    • 99 Thanks
    madvicker
    • #3
    • 4th Jul 18, 2:03 PM
    • #3
    • 4th Jul 18, 2:03 PM
    Unlikely - because for every person who fits the criteria you describe, there are hundreds who mess up and starting paying interest.

    At the same time, if its a reward card that is co-branded, the provider is likely being paid an amount by the brand for every 1 the customer spends on the card.

    However, Rewards cards are slowly being pared back as a result of the interchange fee regulations. They aren't as profitable anymore to operate....
    • beany_bot
    • By beany_bot 4th Jul 18, 2:04 PM
    • 58 Posts
    • 3 Thanks
    beany_bot
    • #4
    • 4th Jul 18, 2:04 PM
    • #4
    • 4th Jul 18, 2:04 PM
    They make money from the fees they charge to retailers, so the anecdotal evidence is that they are falling over themselves for your business with little change that you will default and they'll have to write off your debt or sell it for a fraction of it's worth.
    Originally posted by lisyloo
    That makes sense. I guess that's why AMEX charge higher fee's / arguably have better rewards.
    • zx81
    • By zx81 4th Jul 18, 2:05 PM
    • 18,577 Posts
    • 19,836 Thanks
    zx81
    • #5
    • 4th Jul 18, 2:05 PM
    • #5
    • 4th Jul 18, 2:05 PM

    Has this ever happened?
    Originally posted by beany_bot

    Not that I know of. It's a reliable income stream with virtually zero risk.
    • bonyma
    • By bonyma 4th Jul 18, 2:27 PM
    • 4 Posts
    • 0 Thanks
    bonyma
    • #6
    • 4th Jul 18, 2:27 PM
    • #6
    • 4th Jul 18, 2:27 PM
    I've always wondered. Let's say for 30 years you had always meticulously paid off your reward CC's in full. Every month. And used the rewards to the max.

    Wouldn't this put off lenders? I mean, you are actually costing them money. They make nothing from you.

    Has this ever happened?
    Originally posted by beany_bot
    I am not sure if my case is relevant to what you are asking, but recently I applied for an Aqua card and got rejected. When I asked for feedback, the answer was that their cards are usually designed for people with bad credit history and that my income was too high to fit in that kind of profile.
    • beany_bot
    • By beany_bot 4th Jul 18, 3:02 PM
    • 58 Posts
    • 3 Thanks
    beany_bot
    • #7
    • 4th Jul 18, 3:02 PM
    • #7
    • 4th Jul 18, 3:02 PM
    I am not sure if my case is relevant to what you are asking, but recently I applied for an Aqua card and got rejected. When I asked for feedback, the answer was that their cards are usually designed for people with bad credit history and that my income was too high to fit in that kind of profile.
    Originally posted by bonyma
    I guess that ties in with what I am asking. But your income / credit history are not related. So them saying they are designed for "bad credit history" and "your income" is a strange link to make. You can have an outstanding income and terrible credit history or vice versa.

    Also, if you don't mind me asking. If you have an excellent credit rating (I assume as per their rejection), why were you applying for a card with no benefits and horrible APR? Why not go for something with perks? Assuming you pay off in full every month.
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