I often wonder if the interest rates on credit cards are so high is because of people who can find loopholes in them.
There is a whole movement of individuals calling themselves “churners” often times cards will offer nice signing bonus to new users, in a nutshell, get the card, keep the bonus, cancel the card. Rinse and repeat.
Yeah, I guess some do that, and possibly the interest rates reflect the losses the banks incurr because of it. I suppose, no different to how product aim stores (supermarkets for instance) all have a margin on them to account for loss (theft) that everyone pays, every time they shop.