I just saw a blog post about a Money Magazine article on credit card usage.
I didn't actually see the article, this is all 2nd hand info, but it believe it to be true.
They said that credit card companies are watching where you shop and using that as another factor in determining what level of risk you are to them. If you use your card in places like bars, nightclubs, pool halls, liquor stores, etc, they will consider you a higher credit risk.
Another big one they hit on is marriage counselors. It seems that if you use your credit card to pay for your marriage counseling sessions, they are concerned that you will be breaking up with your spouse and consider that another high risk factor to them getting repayment
Just one more thing to think about if you are struggling with credit ratings and use your card in places that they may consider risky.
But is that really legal? I don't see any concrete reason why is isn't, but it doesn't seem like it should be.
When you sign for your credit card you pretty much give up all your rights, including a right to sue. Almost everything has to go through an arbitrator of their choosing.
The part that ticks me off and seems like it shouldn't be legal is that they have the right to raise rates at any time and there's nothing you can do about it.
You could run up 10 grand in debt at 10% interest and they can come along and say they're raising the interest rate to 18% and there's not a thing you can do about it.
To me, one of congresses biggest screwups was giving the credit card companies just unbeleivable rights while taking them away from the consumers.
ha! reminds me of a friend who would write on the "memo" line of his checks for cash stuff like pot, weed, beer, hookers. he did it to tick off his aunt who worked at the bank and was a member of the city council...
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You should fear anything that can bleed for seven days without dying... (as told to Mr. DS on 3-12-10)
I agree with JR. Our Visa was through our credit union at a flat 6% interest rate for the last 15 years. This summer our credit union sold off all their Visa cards to a different bank. We then got a letter informing us that the new bank that was handling our account was raising our rate to 18% (their standard interest rate for all Visa cards) and they basically said if we didn't like it pay the balance off and cancel the card within 2 weeks of receiving the letter. I was ticked off!! Since I couldn't pay the balance, we got stuck with a huge increase in the interest rate. I hope to have this card paid off in another 3 months and be done with it.
Today, I got in the mail, an "Update of Terms and Conditions" from some "Finance" company I've never even heard of.
As I was reading over this, I was thinking "Either someone has opened credit in my name, or this is a phishing scam to get me to call and give them my info to look up my non-existent account."
I decided to call but not give them any more info than what they already had on the letter that was sent to me.
Turns out it was all legit . . . for the most part.
There is a feed store here in town that I used to buy our dog food from. I haven't bought anything from them in probably 6-7 years.
This feed store started using this company as a billing/credit provider. They sent this company their entire customer list and every customer and former customer had a line of credit opened in their name.
The lady was nice and she said she could close the account if I wanted which I had her do.
Now, to me that's just not right. Something like that should only be "opt in" not forced in and "opt out".
I've heard of a lot of places doing that kind of thing Web. I don't think it's right that you have to "opt out" of something you never agreed to open in the first place. I hate that companies can sell our information to anyone that has the money to buy it.
I got one of those letters yesterday that basically said we are partnering with a new bank to provide your credit card. You don't need to do anything. I already have a credit card with this other company. Why do I need a second?
Another thing I dislike is when a store credit card switches from private to bank financing. Sears did it a number of years ago. I know Macy's did it. All of a sudden in the mail appears a new card. Except now it is a mastercard with the store name on it. No way. I didn't ask for this. Close the account. Waste my time and their printing costs.
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Stop trying to be what you see. Be what you ought to be.
