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Epic Contributor
Creditaddict
Posts: 20,153
Registered: ‎10-23-2007
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Re: PIF profits

It does not make them more money if they are visa!
But amex built there empire on pif, it's not until recently they have been getting into trouble because of revolving debt growing, something amex has never really had with there customers in the past.
Fico Scores: EQ- HATE U, TU 671 GE, EX 669 Chase(09-15-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
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Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007
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Re: PIF profits



turbowrx wrote:
So how does PIF make them more money?


It probably doesn't make them more money in actual dollars, but it does make them a decent amount money with far less overall risk, which is what conservative lenders want.

 
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App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
Senior Contributor
UpUpUp
Posts: 3,017
Registered: ‎06-03-2008
0

Re: PIF profits



cheddar wrote:


turbowrx wrote:
So how does PIF make them more money?


It probably doesn't make them more money in actual dollars, but it does make them a decent amount money with far less overall risk, which is what conservative lenders want.

 


Exactly, it's less risk for them and they do make money on those transaction fees. Otherwise, it appears that they would make more from those that carry a balance, because they get the initial transaction fees and then also the interest on carrying balances.

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