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Because you are so anomalous that you don't matter. Statistically, they probably know that you (and if not you, most people like you) will pay late enough times or carry a balance enough times that you are still profitable. See my response above. They are not lending to you, individually. THey are lending to your whole class of borrowers. Additionally, while MattinSF is correct that you get to play the float off the CC company, they do the same thing to their retailers, so don't feel too bad for them.
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What a drag it is getting old. -- Stones
Dire again you're over simplifying things. Each customer is treated as an individual. Each customer is individually underwritten and assessed as to their credit worthiness. Each customer is regularly reviewed and their account terms, APR etc may change on an individual basis if their situation or payment habits change.
For example if your credit card company sees signals of risky behavior...the opening of multiple new credit accounts, missed payments...even with other creditors, using one credit card to pay off another...they may and probably will make changes to your account terms..such as lowering your credit limit. On the flip side if you have been a good responsible customer for a certain period and want a lower APR you can ask your credit card company and in many instances they will give you a better rate or better terms and conditions to keep your business.
Of course the statisticians use classes of customers to build business models and profile types of customers, but each customer is individually underwritten and reviewed.
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"A society is defined not only by what it creates, but by what it refuses to destroy."
John Sawhill
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MattinSF: Mar 29, 05 11:00
I agree that each customer is treated individually to the extent necessary to place them (and periodically readjust them) into the correct risk pool based on actuarial data. But it's not like they are looking at people's health records or job performance reviews to see if Joe Blow is likely to have a heart attack or get canned. They are not lending to Joe Blow like you or I would; they are lending to a big pool of people like Joe Blow. Big difference.
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What a drag it is getting old. -- Stones