THey make more money off of your friend. He's also shown that he can carry a large amount of debt.
That's for sure.
He's also got a bigger record than you, makes more payments...like a QB who threw 50 passes for 80% comp vs one who threw 300 for 70% -- you take the guy with more passes. I'd guess he has a longer history too...
Actually, I'm 10 years older than him, so I have a longer history. I make my payment every month, so he doesn't make more payments than me - we each pay once a month. I just charge more each month and pay more each month.
He's also probably charging less than you, just carrying more. That has an effect too. Hell, paying off a balance isn't what matters, it doesn't help you to pay a card to zero. You're better off rating-wise to carry that balance and NOT pay it all off at once...What they want to see is that you can manage a large balance consistently. Thats what credit means...
Why would I want to manage a large credit balance consistently at the rates charged by credit cards? I have had house loans, etc and maintained those. But I think it's nothing short of ridiculous to keep a large balance at a large percentage of interest on a credit card.
The whole thing is a scam. They should look at my payment history and my equity then make a judgement based on that. I shouldn't have to be blackmailed into owing alot of money to credit companies to prove that I am a good risk. It just doesn't make any sense. (but it does result in a helluva lot of money in their pockets)
