Be Careful: Credit Rating and Shopping

1935 Views 15 Replies 12 Participants Last post by Jiaguy, Feb 2, 2009

frick

Discussion Starter · Jan 30, 2009

This was quite interesting and rather infuriating. In an age where credit is so important now that companies are even requesting a credit check to even consider hiring you (in a non-financial position), it makes it even worse.

http://abcnews.go.com/GMA/GetsAnswers/story?id=6747461&page=1

A new policy being used by at least one major credit card company judges a shopper not necessarily by his credit purchases and payments alone, but also by the fiscal behavior of the fellow shoppers in the stores he visits.
Are credit companies profiling shoppers?

And in some cases, the bad repayment history of the guy behind you in line at your local megastore could result in a reduction of your credit line, which, in turn, could lead to a reduction in your credit score -- all because of where you shopped.

There was another useful link from the article that I'll link separately: http://www.newcreditrules.com/

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gallyrat

· #2 · Jan 30, 2009

Wow! That's just outrageous! Because I shop at a Walmart that's in a questionable neighborhood, it can bring my credit limit down!?

As far as companies requesting a credit check before they can hire you, I can understand that. The last 3 companies I have worked for did that as common practice since employees deal with delicate customer information.

broke not

· #3 · Jan 30, 2009

I'm just going to do all of my shopping at places like this then.

I can't afford stuff like $125 t-shirts, but if the financial status of the people in front of and behind me in line at the store rubs off on me, well....

;D

foolhasty

· #4 · Jan 30, 2009

The article mentions that profiling on the part of the card companies became much easier after 9/11. 'Spose this is yet another thing I can blame on the Patriot Act?

Whatever Dude

· #5 · Jan 30, 2009

Exactly. +1,000,004

nyc rugby

· #6 · Jan 30, 2009

foolhasty said:
The article mentions that profiling on the part of the card companies became much easier after 9/11. 'Spose this is yet another thing I can blame on the Patriot Act?

yep.

Jawn

· #7 · Jan 30, 2009

gallyrat said:
Wow! That's just outrageous! Because I shop at a Walmart that's in a questionable neighborhood, it can bring my credit limit down!?

Just shopping at walmart at all should be enough to bring down your credit score, questionable neighbourhood or otherwise. Then again, isn't any neighbourhood that contains a walmart quetionable?

yakimushi

· #8 · Jan 30, 2009

Simple solution: don't use credit cards.

MorganB

· #9 · Jan 31, 2009

yakimushi said:
Simple solution: don't use credit cards.

Yeah, I was wondering if my Visa check card purchases could be counted as credit card purchases for the purpose of evaluating my credit. It's not really a credit card, as it draws directly from my checking account.

Either way, it's a good idea to stick with cash from now on.

frick

Discussion Starter · #10 · Jan 31, 2009

I'm going to guess that ANY recordable transaction is going to be datamined this way. Debit cards, checks. Only cash is not traceable. But with cash, I've run into the problem where the cashier doesn't always have change because nearly everyone uses credit anymore.

If your debit card becomes compromised the criminal is taking money directly from your account--in cash. Fraud is easier to deal with via an actual credit card because at least it's virtual money instead of withdrawn from your account.

Mine was compromised last week; someone made a purchase in Spain for $1089 but the bank flagged it right away at least, first time ever for me. My debit card is tied directly with my online banking account (as with many banks now) and when I froze the card, I could no longer log in to online banking to even see my transactions.

Instead, I had to some guy with a very thick Indian accent read them before I gave up and waited for the new card to arrive and reactivated my online banking with it.

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NeverEndingNinja

· #11 · Jan 31, 2009

Thats weird that your online banking was inaccessible after canceling your debit card. Mine has worked non-stop since I started it, and I've gone through three or four cards since then.

You might want to ask your bank why its online banking system sucks so much

frick

Discussion Starter · #12 · Feb 1, 2009

Apparently many banks now associate your debit card number with everything. If you do not have one *at that time* you are blocked from accessing your online banking. As soon as I got my new card (2 days later), I used it to reactivate my account. I have never had problems with online banking other than this incident when I had that card blocked. I think it's crap.

This was Citibank. I have also heard from another co-worker who uses a different mega-bank (I don't remember if it was BofA or Wells Fargo) but they also did the same thing to him.

DougZ

· #13 · Feb 1, 2009

credit(cards) is crap..and even though people...some people..say you always need to have it..I do not. Long story short, mine and Tracey's credit went in the crapper soon after my boom boom in 06. We quickly maxed our credit cards, helping to cover the stuff NJ disability was not. Still climbing out of the hole, and having no room on a credit cards to speak of, we have been living for about the last 2.5 years with out the use of credit cards.

Luckily, the sale of some motorcycles, my WRX and tax returns, have help to start getting us out of the hole, pay off some key debts, and still put some money in savings..in case of emergencies.

Both Tracey and I are making great strides on paying off our credit cards..with bigger payments than we have ever been able to do in the past. I will have one paid off by summer, and the second within 12-15 months after that. Tracey should have all her's paid off by the end of 09.

We are dead set on canceling all CC's once paid off, and not buying a new vehicle anytime soon..and certainly not while still in NJ. Debt truly is the devils work..and while in it, we are all indentured servants.

I'll probably always have a mortgage..unless I win the lottery...but do not wish to have any other debt if at all possible.

A wise man once told me a key to his success in business was, " always making sure my tomorrow in better than my today" Words to live by.

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Jiaguy

· #14 · Feb 1, 2009

Hmm... my credit may be determined by the people shopping at the same place? I should head down to the country club, put 1000 10-cent golf tees on my card - one at a time; credit city here I come!

nyc rugby

· #15 · Feb 2, 2009

Jiaguy said:
Hmm... my credit may be determined by the people shopping at the same place? I should head down to the country club, put 1000 10-cent golf tees on my card - one at a time; credit city here I come!

You've obviously never worked at a country club. I did for about 5 years and while the members would be considered "wealthy" by most people many of them were so leveraged out to maintain that lifestyle that their credit was stretched thinner than a size 2 dress on Roseanne Barr.

Nothing beats the look of embarrassment on the face of a "millionaire" trophy wife when her Visa gets declined for a $40 charge in the pro shop.

-"Oh, my, it must be an error"
-"I guess so, funny how you have this problem at the end of every month..."

Jiaguy

· #16 · Feb 2, 2009

That didn't happen at the place I used to work. There were no trophy wives, it was a fairly conservative small kosher club, the gossip reel would have killed anyone who found themselves in that situation.

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