The Daily Stat: Subprime Credit-Card Holders Are the Most Profitable

 

Are you having trouble viewing this email? If so, click here to see it in a web browser.

November 15, 2013 Subprime Credit-Card Holders Are the Most Profitable Although credit-card holders with low credit ratings default more often than the rest of the population, the interest and fees they pay make them far more profitable for banks than any other groups of credit-card customers, according to research reported in The New York Times. Even during the financial crisis, when banks were hemorrhaging money on subprime mortgages, subprime credit cards were a major source of profits. New federal guidelines limiting hidden fees are saving customers an annualized 2.8% of the average daily balance on cards, the Times says. SOURCE: Card Act Cleared Up Credit Cards' Hidden Costs

PREVIOUS STATS Your Genes May Predispose You to Claiming Too Many Sick Days Are You Among the 14% Who Always Tell the Truth? Yes, It's Worth It to Work Those Long Hours Friendly Social Ties Between Merging Companies Can Spell Trouble The Threat of Dismissal Shakes Up Chicago Public Schools And You Thought the Weekend Was Supposed to Be Fun

BEST SELLERS HBR's 10 Must Reads: The Essentials | HBR's 10 Must Reads Boxed Set | HBR Guide to Persuasive Presentations | HBR Guide to Better Business Writing | HBR Guide to Getting the Right Work Done

FEATURED PRODUCT The First 90 Days App for iPhone and Android MAKE YOUR NEXT CAREER TRANSITION A SUCCESS. Download The First 90 Days App today to help you stay ahead of the game. Download on the App Store Download on Google Play

FEATURED PRODUCT The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail HBR Press Book The bestselling classic on disruptive innovation, by renowned author Clayton M. Christensen. His work is cited by the world's best-known thought leaders, from Steve Jobs to Malcolm Gladwell. In this classic bestseller--one of the most influential business books of all time--innovation expert Clayton Christensen shows how even the most outstanding companies can do everything right--yet still lose market leadership. Christensen explains why most companies miss out on new waves of innovation. No matter the industry, he says, a successful company with established products will get pushed aside unless managers know how and when to abandon traditional business practices. Offering both successes and failures from leading companies as a guide, "The Innovator's Dilemma" gives you a set of rules for capitalizing on the phenomenon of disruptive innovation. Sharp, cogent, and provocative--and consistently noted as one of the most valuable business ideas of all time--"The Innovator's Dilemma" is the book no manager, leader, or entrepreneur should be without. Buy It Now

ADVERTISEMENT

HBR.ORG | THE MAGAZINE | BLOGS | BOOKS | CASES | STORE | SUBSCRIBE TO HBR UNSUBSCRIBE | NEWSLETTERS PRIVACY POLICY | CONTACT Copyright © 2013 Harvard Business School Publishing, an affiliate of Harvard Business School. All rights reserved. Harvard Business Publishing 60 Harvard Way Boston, MA 02163 CUSTOMER SERVICE: 800-545-7685 (US/Canada) 1-617-783-7600 (outside the U.S. and Canada)