Ask HN: Why aren't there startups to disrupt high interest credit cards? Why isn't there a startup out there or different company to disrupt high interest credit cards? Surely a company can still make a ton of money on 3-5% APR? What am I missing? |
Ask HN: Why aren't there startups to disrupt high interest credit cards? Why isn't there a startup out there or different company to disrupt high interest credit cards? Surely a company can still make a ton of money on 3-5% APR? What am I missing? |
A long time ago there was a market for "signature loans" which were based on a banker's appraisal of your creditworthiness.
Those have been squeezed out by home equity loans (very secure but only available to homeowners who have equity) and credit cards (high interest but easy to get.)
perhaps, some algorithm can better assess risk more accurately and charge a different rate based on the consumer and his or her record. But, my guess is, that's illegal.