While many credit card issuers have not adopted this practice it's not unlikely that more and more creditors will start to. Credit card profiling in simple terms is when you're credit card purchasing habits are profiled and compared to other credit card users who shop at the same retailer.


Credit card companies look at the default rate of their credit card holders and profile where those customers have used their credit card for purchases.


This creates a behavior profile which allows the creditor to flag certain behavior profiles of credit card holders and assess a higher risk factor. When certain credit card holders fit this behavior profile the creditor then takes action by reducing the risk as much as possible.


This risk reduction includes reducing the card holders credit card limits.


You've probably seen the news stories, blog posts, and articles about credit card profiling and how many consumers are finding themselves maxed out on credit cards because of their credit limits being reduced.


Some of the common behavior patterns that have been publicly spoken about includes credit card purchases for car washes, massage parlors, bars and stores like Target and Walmart.


For the most recent ABC News story go to http://tinyurl.com/b6fgaa

Have you or do you know of anyone who has had their credit limits reduced because of credit card profiling?

Your comments would be helpful to all of our readers.

Make it a great day!

Marco


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Marco Carbajo is a credit specialist providing credit repair, FICO® enhancement, and business credit. He is the founder of the National Entrepreneur Club and is the author of many credit repair, FICO®, and corporate credit related articles. He is also a public speaker for non profits, trade organizations, companies, and associations covering topics in social media marketing, credit, and business success.