[duxup]

Gotta be honest that I'm not reading 60 pages at this moment.

But that reads like they're talking about the net effect measuring across FICO scores, but it's not clear that they're talking about the overall cause / if this is a case where some of the poor could in fact choose to use these cards.

Being poor is complex, just not having time (two jobs, etc) often means they don't have time for a lot of things, including shopping for credit cards. I wonder if things like THAT are playing a part.

I don't disagree with the math on the end result, I do think the reason is larger than just say rewards cards, and has to be approached careful.

[11101010001100]

If these 'luxury' credit card companies wanted poor customers, you think they would have found them by now?

[bakhlawa]

I think the Grandfather was making a different point. That because rewards cards = higher interchange fee for the merchant, this results in the merchant increasing fees on everyone (the payment networks prohibit charging a higher fee to only those paying with a credit card).

>>>The money extracted by the credit card companies and Visa causes merchants to raise prices for everyone regardless of whether they have a rewards card or use a credit card at all.

>>>This creates in effect a massive money transfer from the poor, who do not use rewards cards, to the rich consumers who do.

[duxup]

The pricing point is such complicated one too. Demand creates pricing changes, supply chains, etc...

If say the poor used these cards at a higher volume, wouldn't they then to be passing on the changes to other poor?

[wyre]

The poor/low-FICO scorers are either A) not getting accepted into credit card programs, B) paying higher interest rates, or C)not able to make their payments in full each month.

Compared to another individual that can put all their purchases on a rewards card and pay off their balance every month.

The pricing point isn’t that complicated either. Nearly every business accepts credit card and can’t avoid the higher credit card fees that pay out to reward programs.