Personal Finance and Investing

Having a low income does not require carrying a balance. Treat the card like a debit card and there is no issue.

But putting that aside, the credit card companies still
make a profit on rewards card users that pay their balance every month. Every purchase is accompanied by swipe fees. Sure they make a higher profit from the folks who carry a balance and pay the occasional late fee, but that’s also accompanied by a higher default rate.

And so long as these cards are offered, I’ll use them. After all, if you don’t, you’re subsidizing those who do (through swipe fees passed on through higher prices).