you're absolutely right bruce, i guess i forgot to mention that no one needs to step into that card you described. it is predatory and should be shot down. there are plenty that will start you with a $500 limit and a $59 annual fee. Rates are high, usually prime + 12% or so, but they are justifiable do to the poor credit.

and believe it or not, the rates that are set are based on simple models of expected delinquencies. the folks who make their payments with high rates are covering the debt for those that refuse to pay. Risk/reward model for the company. The only way the company makes more money than they planned is if more people pay their bills than the model predicted. that rarely happens though because those models are pretty damn good.

I've not said what should or should not be.

I've said that some of these credit card companies do indeed prey, and I've said that often those they prey on do not see beyond their own desperation. People SHOULD make better choices, sure, but a lot don't which is why the companies continue these practices.

Granted, anyone who signs on to this scheme is not making the right choices and there's enough of them to keep this card in existence. But that said, I still think the Continental Finance outfit are pirates.