Credit Card Companies - The new Big Brother
Recently I did a post about the changes that the Federal Reserve is making some rule changes as to how credit card companies may conduct business. Since then I have been reading more and more material about what information credit card companies have access to. Well obviously they now our financial situations, but what I didn't realize was how in depth that information was broken down.
Credit card companies are really using a microscope to analyze how we their customers are not only spending our money, but how we are spending it, and on what in particular. They use that information to reduce our lines of credit, or cut it totally off altogether. Take for example that you all of a sudden start shopping, and using your credit card at a discount 99 cents type store, sounds like a prudent thing to do in this economy. The credit card company may interpret that as a sign that you are having financial difficulties. Same thing goes if you start using your credit card to buy groceries, that is not a wise thing to do anyway, however doing so now may make your financial situation all that much worse.
Where this really becomes a problem is if the credit card company misinterprets the information and reduces your available credit. Now your balance could be almost at your limit which will reduce your credit score and affect any new lines of credit you may wish to pursue.
The trick here is staying consistent with an already established pattern of spending. If you normally go out dinner once or twice a week, continue to so and continue to use the card you usually do, look for another place to save money so that you keep your card use consistent. Don't abuse your credit cards, pay off as much as of the existing balance as possible, and by all means stay as consistent as you can.
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