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Thread: Where you use credit cards may affect your score

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    Where you use credit cards may affect your score

    Good Morning Yahoo!

    So apparently, some credit card companies are now profiling their customers. Your credit score can be affected depending on WHERE you shop. If other people who shopped at the same establishments (such as marriage counselors) have low credit scores, it sends a red flag to your credit card company about YOUR credit-worthiness, even if you always pay your bill on time and don't carry a balance. To make matters worse, they won't even TELL their customers which establishments lower their credit score.

    And before we hear the expected chorus of "zomg they can do what they want" from the usual suspects, I'd like to point out that if this becomes the norm, most people won't have a choice but to A) not own a credit card, or B) subject themselves to this. And for most of us, shocking invasions of privacy are just as bad whether they come from the federal government, individual snoops, or multinational corporations. I think there definitely need to be some regulations on how credit scores are calculated so that we don't have crap like this.
    Last edited by Kandahar; 01-29-09 at 10:15 AM.
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    Re: Where you use credit cards may affect your score

    I'm against this for a different reason. I don't give a rat's ass about the privacy non-issue, but what I DO have a problem with is the profiling. I think it would be fair to say that as a general rule African Americans have a worse credit score than Caucasian Americans based solely on the fact that the average income is less and therefore a lower credit score average is almost certain. With that in mind, with lower income comes less available housing options and a greater density of that specific group than would otherwise exist. With such a high population density you are undoubtedly going to see similar shopping patterns because so many people live in the same neighborhood with the same stores. So, at the end of the day, what's to keep these credit card companies from starting to ding peoples credit because they shop at the same neighborhood grocery store? People are going to start being punished for living in specific neighborhoods before long. THAT I have an issue with.
    Affiant further sayeth not.

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    Re: Where you use credit cards may affect your score

    I dont have a credit card, so no worries here

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    Re: Where you use credit cards may affect your score

    Pretty much everybody who shops at Wal-Mart is screwed....
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    Re: Where you use credit cards may affect your score

    Quote Originally Posted by Kandahar View Post
    Good Morning Yahoo!

    So apparently, some credit card companies are now profiling their customers. Your credit score can be affected depending on WHERE you shop. If other people who shopped at the same establishments (such as marriage counselors) have low credit scores, it sends a red flag to your credit card company about YOUR credit-worthiness, even if you always pay your bill on time and don't carry a balance. To make matters worse, they won't even TELL their customers which establishments lower their credit score.

    And before we hear the expected chorus of "zomg they can do what they want" from the usual suspects, I'd like to point out that if this becomes the norm, most people won't have a choice but to A) not own a credit card, or B) subject themselves to this. And for most of us, shocking invasions of privacy are just as bad whether they come from the federal government, individual snoops, or multinational corporations. I think there definitely need to be some regulations on how credit scores are calculated so that we don't have crap like this.
    I honestly don't have that big of a problem with this, for several reasons:

    1) It's another way for credit card companies to assess the risk involved in lending cardholders credit. I see no reason why they shouldn't be entitled to use whatever information they have available in making their decisions.

    2) In response to the argument that the information gathered here is not very useful at all - I think that's an argument for it. The credit card companies are not stupid - they're going to make their decisions in whatever fashion they think will work best, and that includes weighting the different factors appropriately. If someone has a 20 year record of always making payments and being fiscally responsible, I doubt their credit score will drop 50 points if they stop by Chuck E Cheese one time. I very much doubt they're using this as much of a factor either way.

    3) Given our current situation, I think it's more important than ever that lenders have accurate and complete information when deciding how to lend credit. This is just one small piece of the picture.

    Quote Originally Posted by Indy View Post
    I'm against this for a different reason. I don't give a rat's ass about the privacy non-issue, but what I DO have a problem with is the profiling. I think it would be fair to say that as a general rule African Americans have a worse credit score than Caucasian Americans based solely on the fact that the average income is less and therefore a lower credit score average is almost certain. With that in mind, with lower income comes less available housing options and a greater density of that specific group than would otherwise exist. With such a high population density you are undoubtedly going to see similar shopping patterns because so many people live in the same neighborhood with the same stores. So, at the end of the day, what's to keep these credit card companies from starting to ding peoples credit because they shop at the same neighborhood grocery store? People are going to start being punished for living in specific neighborhoods before long. THAT I have an issue with.
    People have long suffered financial penalties based on where they live. One very recent example - A group of friends wanted to rent a car to drive upstate with me. The kid who lived in Staten Island had to do the rental, because there's a surcharge on people from Brooklyn.
    People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

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    Re: Where you use credit cards may affect your score

    Quote Originally Posted by RightinNYC View Post
    I honestly don't have that big of a problem with this, for several reasons:

    1) It's another way for credit card companies to assess the risk involved in lending cardholders credit. I see no reason why they shouldn't be entitled to use whatever information they have available in making their decisions.
    Exactly. Its their money. So long as they don't discriminate on basis of race, etc, they can create whatever terms they want. If you want their money, you agree to those terms.

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    Re: Where you use credit cards may affect your score

    This is purely unacceptable. All I see is a complete abdication of individual responsibility for some statistical BS attempt at fast cash. This screws honest consumers who are responsible with money and pay their debts. Only harm can come from this practice, and should simply be made illegal. This is exactly the sort of short-sighted bull**** that brought about our current crisis, and its high time we stopped putting up with it.

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    Re: Where you use credit cards may affect your score

    Quote Originally Posted by RightinNYC View Post
    I honestly don't have that big of a problem with this, for several reasons:

    1) It's another way for credit card companies to assess the risk involved in lending cardholders credit. I see no reason why they shouldn't be entitled to use whatever information they have available in making their decisions.

    2) In response to the argument that the information gathered here is not very useful at all - I think that's an argument for it. The credit card companies are not stupid - they're going to make their decisions in whatever fashion they think will work best, and that includes weighting the different factors appropriately. If someone has a 20 year record of always making payments and being fiscally responsible, I doubt their credit score will drop 50 points if they stop by Chuck E Cheese one time. I very much doubt they're using this as much of a factor either way.

    3) Given our current situation, I think it's more important than ever that lenders have accurate and complete information when deciding how to lend credit. This is just one small piece of the picture.



    People have long suffered financial penalties based on where they live. One very recent example - A group of friends wanted to rent a car to drive upstate with me. The kid who lived in Staten Island had to do the rental, because there's a surcharge on people from Brooklyn.
    Just curious, does that include medical, legal and mental records? That is of both the person involved and his/her family? Say a family has had 3 of its female members with breast cancer, then all female members have higher credit rating because they are a bigger risk of contracting cancer and hence dieing and hence not making her payments? How about genetic information? How about where you live or come from? Say a guy who fought his way out of the slums of a major city and made something out of himself, but he is a higher risk because he might have "bad friends" in the old neighbourhood, where his parents still live, which could lower his life expectancy or even put him in jail.. is that okay to lower his or her credit rating for?

    Bascily where does the profiling stop? I understand that they can and should look at your financial situation (job, bank account and such), but what about the other stuff?
    PeteEU

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    Re: Where you use credit cards may affect your score

    Quote Originally Posted by PeteEU View Post
    Bascily where does the profiling stop? I understand that they can and should look at your financial situation (job, bank account and such), but what about the other stuff?
    Its this simple:

    You do not have a right to the money the credit card companies loan you.

    If you do not like how they determine their interest rates/penalty schedules, do not take their money.

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    Re: Where you use credit cards may affect your score

    Quote Originally Posted by PeteEU View Post
    Just curious, does that include medical, legal and mental records? That is of both the person involved and his/her family? Say a family has had 3 of its female members with breast cancer, then all female members have higher credit rating because they are a bigger risk of contracting cancer and hence dieing and hence not making her payments? How about genetic information? How about where you live or come from? Say a guy who fought his way out of the slums of a major city and made something out of himself, but he is a higher risk because he might have "bad friends" in the old neighbourhood, where his parents still live, which could lower his life expectancy or even put him in jail.. is that okay to lower his or her credit rating for?

    Bascily where does the profiling stop? I understand that they can and should look at your financial situation (job, bank account and such), but what about the other stuff?
    Do you not see the difference between a credit card company keeping track of where its credit card is used, and a credit card company snooping in someone's medical/legal/mental background?
    People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

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