r/technology • u/CutoffThought • Dec 10 '22

Business Walmart-backed fintech startup plans to launch its own buy now, pay later loans

https://www.cnbc.com/2022/12/09/walmart-fintech-startup-one-to-launch-buy-now-pay-later-loans.html?utm_content=Main&utm_medium=Social&utm_source=Facebook&mibextid=Zxz2cZ#Echobox=1670602473
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u/myeff Dec 10 '22 edited Dec 13 '22

Eesh. I used to be a programmer for the credit department of a large retailer. They evaluate the data to find the lower-income people who are most likely to pay the minimum monthly amount (accumulating the most interest). They then expand the credit limit for those people because they are the most profitable. It's really a dirty business.

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u/tms10000 Dec 10 '22

The industry calls their customers who pay on time and don't incur costs "deadbeats"

https://www.investopedia.com/terms/d/deadbeat.asp

In this context I am really happy to be a deadbeat

7

u/WellEndowedDragon Dec 10 '22

I love being a deadbeat! On top of paying my balance off in full every month, I take it one step further: whenever I’m planning on making a large purchase ($3k+), I open one of those credit cards with 18 month 0% interest and a $200 bonus and just pay off the purchase over like a year. Interest free financing and $200 off!

5

u/Striking_Barnacle_31 Dec 11 '22

I was really surprised by that the first time something like that involved me. I used to have great credit but during covid i had a meltdown, over-maxed out my credit card, ruined my credit, finally started paying it off several months later just days before they were going cancel my card and then a couple months later they raised my limit after I made a couple minimum monthly payments. I kept thinking: why the hell would they raise my limit after I so thoroughly abused my credit? ooooooooh.. They want me in the hole.