More likely it will reduce the available amount of credit. Credit card rates take into account not only the bank’s profit target, but its cost of money and the risk it won’t be paid back. I understand the impulse to punish credit card companies, but the net effect is rarely (never?) that the credit card company is happy to make a lower profit. The obvious move is to reduce credit lines and to eliminate credit altogether for those who become delinquent.
Well I know that credit card companies jack up the interest rate on people with good credit. Know it for a fact.