Guest Blogger Arone Silverman

Ever notice how it used to be so easy to get a credit card when you’re in financial trouble? Some issuers even offered credit cards to the same customer after they already closed an existing account.

For years the credit card industry had their sights aimed on consumers who carried existing balances. The higher the balance left over after each month’s payment, the more the credit industry would make on long term interest. Naturally, these were the customers to focus on and anyone who paid off their balance in full each month was considered a “deadbeat.” For the uninitiated, "deadbeat" is a slang term used within the industry to describe customers who don't generate the most revenue for the company—i.e. the ones who don't carry revolving balances.

Now that congress has cracked down on the industry, the profit model has changed for credit cards. It will be harder to lend credit to those with high risk, meaning if you’re a good customer the credit card companies will be competing for your business. They are focusing on capitalizing on ‘inter-change fees’ – the fee merchants pay every time you swipe your card when purchasing items (typically 1-3%). So customers who charge a lot each month and pay off their card will be the new target customers.