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How can credit card companies get the profit?

Updated: 9/11/2023
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Tommycai

Lvl 1
9y ago

Best Answer

They can get profit to those who are in need of financial assistance and those who do not update their monthly due payments, where finance charge will be charge to the card holders.

+++

Put more simply, they collect the interest on the loans. Each time you use a credit-card you are buying the goods or services by loan. Although credit-card companies do not levy interest on 100% repayments within one month, they do so on any debt carried beyond that.

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