Keep track of your credit card rate, even if you pay it off monthly

I have two credit cards with the same credit-card issuer. I pay one card off in full every month and carry a balance on the other. The card issuer recently sent me a notice that the rate on the card I pay off in full every month was about to increase.

The notice said the rate increase targeted only people who had bad credit scores (mine are good) or who did not carry balances on their cards.

I think that last reason is insane. I threatened to cancel my card and the company caved and kept my rate the same. Is this crazy or do I just not understand credit-card logic?Well, both. Credit-card companies try all different ways to manage their risk and increase their profits. A rate increase for a "deadbeat" -- which is what card issuers call someone who pays her balance in full every month -- is a way to try to squeeze more profit from a less-profitable customer.

The idea is if she ever should fail to pay her balance in full, the card company would reap more interest.

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