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BootsWalking

macrumors 68020
Original poster
Feb 1, 2014
2,273
14,213
CNBC: Goldman’s Apple Card business has a surprising subprime problem
  • Goldman’s loss rate on credit card loans is the worst among big U.S. card issuers and “well above subprime lenders” at 2.93%, according to a Sept. 6 note from JPMorgan.
  • More than a quarter of Goldman’s card loans have gone to customers with FICO scores below 660, according to company filings. That could expose the bank to higher losses if the economy experiences a downturn, as is expected by many forecasters.

Source: https://www.cnbc.com/2022/09/12/gol...siness-has-a-surprising-subprime-problem.html
 

LeeW

macrumors 601
Feb 5, 2017
4,320
9,392
Over here
I guess the issue is that so many are willing to resort to Apple Card to make purchases they really can't afford. If they are giving out to people with low scores then more fool them.
 
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Eric Idle

macrumors 6502a
Jan 4, 2020
554
426
Judging from the MDN comment section, it's easy to see how some Apple users are complete and total deadbeats. Not surprising at all. No wonder Apple Card is the riskiest card out there.
 

The_Auryn

macrumors regular
Feb 28, 2020
121
154
Judging from the MDN comment section, it's easy to see how some Apple users are complete and total deadbeats. Not surprising at all. No wonder Apple Card is the riskiest card out there.
Lol. I used to work at a bank. 'Deadbeats' was a term used solely to describe people who paid off their credit cards in full every month, i.e. they didn't pay interest to the bank. Entire campaigns were designed to try and get 'deadbeats' to start rolling over their monthly balances.
 
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Eric Idle

macrumors 6502a
Jan 4, 2020
554
426
Lol. I used to work at a bank. 'Deadbeats' was a term used solely to describe people who paid off their credit cards in full every month, i.e. they didn't pay interest to the bank. Entire campaigns were designed to try and get 'deadbeats' to start rolling over their monthly balances.

I have not carried a balance in over 20 years. I use my credit cards every month but NEVER carry a balance. I get well over $1500 in bash back rewards per year too.
 

Killbynumbers

macrumors 6502a
May 29, 2019
564
552
Lol. I used to work at a bank. 'Deadbeats' was a term used solely to describe people who paid off their credit cards in full every month, i.e. they didn't pay interest to the bank. Entire campaigns were designed to try and get 'deadbeats' to start rolling over their monthly balances.
I am one of these deadbeats. I've been able to start paying off my balances in full over the last year and will never carry a balance again.
 

compwiz1202

macrumors 604
May 20, 2010
7,389
5,745
Lol. I used to work at a bank. 'Deadbeats' was a term used solely to describe people who paid off their credit cards in full every month, i.e. they didn't pay interest to the bank. Entire campaigns were designed to try and get 'deadbeats' to start rolling over their monthly balances.
I never understood this. If they're using it and not defaulting, the bank is getting merchant fees. Other than defaulters, the worst ones would be the ones who never use the card.
 

The_Auryn

macrumors regular
Feb 28, 2020
121
154
I never understood this. If they're using it and not defaulting, the bank is getting merchant fees. Other than defaulters, the worst ones would be the ones who never use the card.

Not really. Think about it. Merchant fees are what ... about 2% of the purchase. Most credit cards are dishing out the same and more in cash rebates, travel rewards, etc. It's lucky if they even break even. What they want is to make money, and that is for people to pay 15-25% interest per month, every month. Wall Street greed.
 
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Lee_Bo

Cancelled
Mar 26, 2017
606
877
Lol. I used to work at a bank. 'Deadbeats' was a term used solely to describe people who paid off their credit cards in full every month, i.e. they didn't pay interest to the bank. Entire campaigns were designed to try and get 'deadbeats' to start rolling over their monthly balances.

Then a “deadbeat” I am. I make all my monthly purchases with Apple Card, pay it off at the end of the month, and reap the rewards of Apple Cash.
 
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russell_314

macrumors 603
Feb 10, 2019
6,150
9,198
USA
I’m a deadbeat. I haven’t paid interest yet on my Apple Card and I’ve got lots of cash back 💰
 

Eric Idle

macrumors 6502a
Jan 4, 2020
554
426
Trust me has I say try to payoff debts ASAP and only use credit cards when absolute necessary!
Nonsense. Use credit cards daily. Every purchase you can. Rack up those cash back rewards. I average close to $1000 a year in cash back rewards.

Pay it off every month and it's all FREE money.
 
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compwiz1202

macrumors 604
May 20, 2010
7,389
5,745
Not really. Think about it. Merchant fees are what ... about 2% of the purchase. Most credit cards are dishing out the same and more in cash rebates, travel rewards, etc. It's lucky if they even break even. What they want is to make money, and that is for people to pay 15-25% interest per month, every month. Wall Street greed.
And I'm sure a great majority don't pay in full, so the banks more than make up the money from them.
 
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Böhme417

macrumors 65816
Mar 11, 2009
1,012
1,403
Not really. Think about it. Merchant fees are what ... about 2% of the purchase. Most credit cards are dishing out the same and more in cash rebates, travel rewards, etc. It's lucky if they even break even. What they want is to make money, and that is for people to pay 15-25% interest per month, every month. Wall Street greed.
Huh? That would be an APR upwards of 300%.
 
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