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I saw this story on my local news station. It appears that credit card issuers are monitoring their card users to see where they are shopping. If they see you are shopping at thrift stores (Goodwill, Salvation Army, Consignment shops, etc.) they may presume you are in financial difficulties, and lower your credit limits, or raise your rates, or deny you credit. What do you think of this? To me, it smacks of class discrimination. People who use credit wisely but shop frugally to stay within their budgets are being discriminated against. The reporter recommends that shoppers use cash when shopping at these type of stores to avoid this being used against them.
I think this is definitely a game of "telephone" distorting the message. A few days ago the NPR show Marketplace did a story about the possibility of firms adjusting the amout of credit they make available to card holders based of data mining about their spending. This was due to a law suit against issuer CompuCredit, a firm well acquainted with litigation and the perils of serving the credit challenged. There was NO TALK of this being the pattern of scoring from FairIssac or any other bureau. Credit card companies are watching you | Marketplace From American Public Media (http://marketplace.publicradio.org/display/web/2009/07/08/pm_new_redlining/ - broken link) CompuCredit - Who We Are - Company Fact Sheet Feds accuse CompuCredit of deceiving customers - USATODAY.com
I will immeadiately rush out to the nearest Salvation Army store and max out by Amex Black Card to see what happens with my Fico score and I suggest you all do the same. Centurion Card - Wikipedia, the free encyclopedia
Nothing in that story about credit scores. I would bet you any amount of real money that the "government probe" mentioned is the very same linked to be in a concrete way by my stories.
MSNBC is an organization I hold in very low regard as far as having much "we can believe in"...
Once a purchase of mine in Big Lots raised red flags with Discover. It wasn't any unusual activity - it was in the city I live in and I'd been to Big Lots before. For some reason they felt the need to call me about 30 minutes later.
Location: 23.7 million to 162 million miles North of Venus
23,624 posts, read 12,543,921 times
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Originally Posted by chet everett
Nothing in that story about credit scores.
It's not that the act of where you shop that will cause your scores to be lowered, it's the adverse action from the creditors because of where you shop is what will lower your scores. Lose a part of your credit limit or the card itself and your scores will probably be lowered.
It's not only discount houses where a person would more than likely see adverse action from the card creditor, many other things will trigger the risk assessment. ie., using the card at the ATM, the doctors office, the mechanic, the liquor store, online porn (I have no first hand knowledge of that one ), online shopping, etc., etc.
I can afford to shop at high end stores but I DON'T WANT TO. Not when I can find a good buy---sometimes the same label---at a thrift store. That is just good budgeting. I now find I can't shop in the stores who charge such high prices for clothes. I won't pay their prices. Sorry.
It's not that the act of where you shop that will cause your scores to be lowered, it's the adverse action from the creditors because of where you shop is what will lower your scores. Lose a part of your credit limit or the card itself and your scores will probably be lowered.
It's not only discount houses where a person would more than likely see adverse action from the card creditor, many other things will trigger the risk assessment. ie., using the card at the ATM, the doctors office, the mechanic, the liquor store, online porn (I have no first hand knowledge of that one ), online shopping, etc., etc.
And casinos - that one I understand, although it's a little disconcerting to know that they are tracking stuff like this. Big Brother is watching and all that. It just seems to me that people who have a modest income and are frugal and buy within their means shouldn't be looked at as a credit risk simply because they are being responsible. Use their prior payment history to make those decisions, not where they are spending their money.
Location: 23.7 million to 162 million miles North of Venus
23,624 posts, read 12,543,921 times
Reputation: 10485
Quote:
Originally Posted by janetvj
And casinos - that one I understand, although it's a little disconcerting to know that they are tracking stuff like this. Big Brother is watching and all that. It just seems to me that people who have a modest income and are frugal and buy within their means shouldn't be looked at as a credit risk simply because they are being responsible. Use their prior payment history to make those decisions, not where they are spending their money.
Definitely casinos, the risk list is probably very vast.
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