Banks make poor pay more

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In an effort to squeeze more money out of unassuming consumers, some banks are using software to size up what loan interest rates borrowers will accept. The less money you have and the less sophisticated you appear to be, the more likely you’ll pay a higher rate. It reportedly all boils down to the poor, rural and loyal customers subsidizing the deals offered to wealthy, urban and sophisticated shoppers. Thrive, a free online personal financial advisory service, surveyed 730 people and found that wealthier customers have access to lower fees, better interest rates, lower closing costs and more services, including financial guidance, enhanced customer support and concierge services—all a function of how important they are to banks, says Avi Karnani, CEO of Thrive.