Companies have the right to pick whoever they want to lend money to, for any reason except legally rejected ones.
Part of the unexpected side effects of credit card reform is that when you reduce the profits of certain classes of customers, this causes the companies to not be able to carry the less profitable loss leaders, so companies start cherry picking the best customers.
It's like how 80-90% of a banks customers make it no money at all. They are all loss leaders. They make their money on a very small percentage of the customers.
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Companies have the right to pick whoever they want to lend money to, for any reason except legally rejected ones.
Part of the unexpected side effects of credit card reform is that when you reduce the profits of certain classes of customers, this causes the companies to not be able to carry the less profitable loss leaders, so companies start cherry picking the best customers.
It's like how 80-90% of a banks customers make it no money at all. They are all loss leaders. They make their money on a very small percentage of the customers.