Why do people with bad credit tend to get high interest rates?
March 23, 2009 10:42pm CST
How will the bank make a profit from someone with bad credit if the person with bad credit won't be able to pay back the full amount wouldn't the bank end up with less money then they loaned. Do the banks really think high interest rates will encourage someone to pay back the full amount on time? I don't understand. Please enlighten me.