Comments on: Looking Inside a Credit Card Portfolio http://thefinancebuff.com/2007/12/looking-inside-credit-card-portfolio.html like a friend telling you about money ... Fri, 10 Sep 2010 02:38:28 -0400 http://wordpress.org/?v=2.8 hourly 1 By: Anonymous http://thefinancebuff.com/2007/12/looking-inside-credit-card-portfolio.html/comment-page-1#comment-357 Anonymous Thu, 20 Dec 2007 16:20:00 +0000 http://blog.thefinancebuff.com/?p=204#comment-357 Interesting....<br/><br/>Some quick figuring -- correct mistakes please:<br/><br/>$94 billion owed/$1719 avg bal = ~54 million accounts<br/><br/>Avg balance carried = $4311 * 0.135 (average interest rate on bankrate.com) = ~$582/customer * 54E6 * 0.4 = ~$12.57 billion interest income per year.<br/><br/>Not bad. I think I could live on that.<br/><br/>Of course, not included in this are other fees such as annual fees, late fees, over limit fees, etc. I'm sure that's a big number for their bottom line.<br/><br/>Another way: That's only ~$233 interest earned per customer, per year.<br/><br/>Ted Interesting….

Some quick figuring — correct mistakes please:

$94 billion owed/$1719 avg bal = ~54 million accounts

Avg balance carried = $4311 * 0.135 (average interest rate on bankrate.com) = ~$582/customer * 54E6 * 0.4 = ~$12.57 billion interest income per year.

Not bad. I think I could live on that.

Of course, not included in this are other fees such as annual fees, late fees, over limit fees, etc. I’m sure that’s a big number for their bottom line.

Another way: That’s only ~$233 interest earned per customer, per year.

Ted

]]> By: Anonymous http://thefinancebuff.com/2007/12/looking-inside-credit-card-portfolio.html/comment-page-1#comment-356 Anonymous Thu, 20 Dec 2007 06:37:00 +0000 http://blog.thefinancebuff.com/?p=204#comment-356 This cracks me up... I reviewed my monthly statement from Discover yesterday and I saw that they bump'ed my interest rate from 16% to 22%. I called and asked why and the response was, "Discover needed to ajust my rate to stay competative with other lenders." <br/><br/>I closed my account.<br/><br/>It's crazy out there. This cracks me up… I reviewed my monthly statement from Discover yesterday and I saw that they bump’ed my interest rate from 16% to 22%. I called and asked why and the response was, “Discover needed to ajust my rate to stay competative with other lenders.”

I closed my account.

It’s crazy out there.

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