Great Credit will benefit because banks base portfolios and reserves on the average credit of the overall portfolio. They are willing to give money away to people with great credit so that they can make riskier and more profitable loasn to those with more marginal credit. This is one of the reasons that credit card companies benefit from the 0% client. 1 they make money from the merchant procesing fees but 2 they are able to offer higher interest rate cards to borrowers while maintaining a respectable avaerage risk for their portfolio. Some have compared this strategy to a barbell.
