Established Contributor Posts: 565 Registered: ‎06-11-2007
Capital one - this is scary  Back before Capital One, there were
just two kinds of consumers: People who could afford credit
cards and people who couldn't afford credit cards. The problem
was that the people who could afford credit cards already had
them, and the people who needed them were deadbeats.  The guy
who started Capital One imagined a third kind of person --
someone who could almost afford a credit card. A virtual credit
card holder. Something between a good risk and a social
parasite. Someone who couldn't pay off the principal on a card
-- only the interest.  That person -- that fluxoid -- is
actually a better customer than someone who can really afford a
card. Because interest and penalties are where the money is.  If
you have enough data -- if you can find the exact right people
-- you can make higher profits lending money to someone who
can't pay you back than someone who can. As long as they can
virtually pay you. In 2001 -- not the mo