Скачать или смотреть Late fees exist because underwriting is lazy!

When I told a senior banking executive we were building a credit card with no late fees, he laughed.

Not politely.
Not skeptically.
He belly-laughed.

“Half my profits come from late fees,” he said.

And that’s the problem.

Late fees don’t exist to help customers succeed.
They exist to compensate for bad underwriting.

We wanted a system so strong that we wouldn’t need penalties to stay profitable.
No compounding.
No late fees.
No traps.

If someone couldn’t afford the credit, we simply wouldn’t approve it.

That forced us to build one of the most disciplined underwriting engines in the industry because the only way we made money was when people actually paid us back.

At first, everyone said it would never work.
Then we scaled.
Then competitors noticed.

Now, more than half the volume in the industry is moving toward late-fee-free models.

Sometimes the ideas people laugh at are the ones that expose what’s broken.

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