Did you know that there is a new model that credit card companies are using called behavior scoring and it could lead to a reduction of your credit line?
Due to increasing defaults, the business of data profiling is becoming more and more popular. According to an article from publicradio.org, the data profiling business is a $25M a year business, with Equifax being one of the biggest players.
Lenders are collecting information on what you purchase and where you purchase it and analyzing this information in hopes to predict how likely you are to be able to continue paying your bills.
Here is an example of behaviors that could lead to a reduction in your credit line:
• Buying alcohol (a sign you are depressed about losing your job or financial issues)
• Going to the spa (stress again….huh?)
• Retreading tires
• Going to a bar
• Shopping at discount stores (God forbid you try to save money!)
• Marriage Counseling (A sure sign divorce is imminent!)
• Buying something off an infomercial
Now, if you ask me, some of the behaviors they consider suspect are downright bizarre and it does not seem right that they could alter your credit cards based on this! But, as long as it is in the fine print of your cardholder agreement, it seems to be perfectly legit!
So, next time you pull out your credit card, you may want to think again! Apparently, you are now being judged by your credit cards debt.
If you find yourself saying, “I need to learn how to fix my credit!” don’t forget to join CreditRepairCollege to get insider information on how to fix bad credit!
You must log in to post a comment.