Creditors Cutting Credit Limits Based on Where You Shop

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Mogul of Pineapples
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Creditors Cutting Credit Limits Based on Where You Shop

Postby Mogul of Pineapples » Sat Dec 20, 2008 9:56 pm

This article cites a 29 year old business cardholder who had his credit card limit slashed by American Express because people that shopped where he shopped had poor re-payment history. They mention Wal-Mart was one of the places he frequently shops, maybe that was a trigger? Either way, this algorithm for credit limits is not fair in my opinion. If the customer is spending it at merchants which are obviously troublesome (mortgage lenders, etc) I could see some rational behind it. But it's pretty unfair to base it on stores that anyone can and does shop at.

Card companies adjusting credit limits | ajc.com
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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magyar1045
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Postby magyar1045 » Sun Dec 21, 2008 8:40 am

Of course it's not fair. I think that these credit card companies think that people who don't shop at Bloomingdale's, Macy's, other high end stores are scum.

1bootcamp
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Postby 1bootcamp » Sun Dec 21, 2008 1:45 pm

If anything the ones shopping at the higher end stores are probably more of a risk, overspenders. 98% of us shouldn't be shopping at Neiman Marcus or Saks in this economy. Time to buckle down and save your greenbacks because it could get a whole lot worse than what we're seeing right now.

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Postby Mogul of Pineapples » Tue Dec 23, 2008 3:18 pm

Agreed. Many that shop at the high end stores are trying to do nothing more than impress people. It doesn't mean they have money.

Ironically I know someone that has tens of millions and he buys his clothes at discount shops like Ross, meanwhile he has a 15,000 square foot house. That goes to show you can't stereotype when it comes to spending either.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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