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Valued Contributor
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Registered: ‎01-24-2012
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Re: Based on CCC. What are your thoughts !


trumpet-205 wrote:


You are mistaken. MCC (coding system for Visa and MasterCard) DOES distinguish between tire retreading and a tire store.

 

5532 for tire shop, and 7534 for tire retreading.

 

http://www.irs.gov/irb/2004-31_IRB/ar17.html


While this is true, if it is in the same place, chances are it will be one or the other. Grocery stores have more than just groceries, but the purchase shows up as groceries, no groceries and detergent. So if the garage you go to sells tires and treads them, it will most likely just show up as automotive repair or something similar.

Established Contributor
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Registered: ‎07-24-2012
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Re: Based on CCC. What are your thoughts !

People read far too much into these things.  It's about patterns, not about isolated expenditures.

 

Someone who shops at Wal-Mart and runs up daily $100 tabs at the bar is going to look risky.

 

Someone who buys a gun at Wal-Mart because they have the best price is just going to look like a smart shopper.

 

Someone who goes from spending $2000 a month at Neiman Marcus to only spending $200 a month at Target is going to look like someone whose financial circumstances have changed drastically.

 

Someone who continues spending $2000 at Neiman Marcus and adds a $200 expenditure at Target just looks like someone who probably wanted the cool Michael Graves designed toaster oven at Target. And a Phillipe Starck plunger.

 

Subscribing to one porn website on your credit card....pretty normal.

 

Subscribing to 5 different porn websites for a total tab of over $100 per month....looks kind of risky.

 

Paying your taxes, then paying in full when the bill comes....looks like someone who just wanted the rewards.

 

Paying your taxes, then carrying the balance for months....looks like someone who couldn't afford to pay their taxes.

 

There's really no need to get paranoid about this stuff. Credit issuers have invested a lot of research in making the algorithms that detect these patterns avoid false positives as much as possible. These types of purchases should only affect you if they reflect an overall pattern of behavior that indicates increased risk.

 

And frankly, sometimes life throws us curveballs and we do find ourselves in riskier situations where our personal patterns change. It happened to me when I was unemployed...a card closure here, a CLD there. Sure, I could have prevented it by continuing to shop where I used to shop, at the spending level I used to spend. But ultimately, it was more important to me to make the best decision for my financial future by stretching my savings as much as possible while I looked for a new job. And if meanwhile the credit companies made what was the best decision for their financial bottom line by knocking me down a peg or two, that was their prerogative.

 

In the long run, I win out because I survived a rough patch and am back in the workforce with a 6-figure job.  All it's going to take is time for me to re-establish my creditworthiness. I'm certainly not going to fret over every purchase of a massage at the spa down the street or a round of drinks at the pub with friends. I'm going to live my lifestyle in whatever way is appropriate for me and my current circumstances, and my creditors can like it or lump it as they choose.

Starting: EQ 622 (myFICO 7/7/12), EX 696 (TU FAKO 8/14/12), TU 621 (CK TransRisk 7/24/12)
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Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
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Re: Based on CCC. What are your thoughts !


jsucool76 wrote:

llecs wrote:

I don't think it's as big of a deal they make it out to be. I used my Amex all the time at Wally World, used it paying taxes, used it at spas, and used it paying for a ticket or two without issue. However, Amex hit me with an FR due to using it for legal fees, or so said the CSR.


The story about the people who got their amex card closed for shopping at walmart had a LOT more information than people care to say. The people also had a mortgage with a subprime lender that (from what I read in the article about that) was doing very badly, and I think the mortgage firm ended up collapsing or being bought out or something. That was the main reason amex closed their card. 


IIRC, it was also the person's belief that some recent charge at Walmart is what did them in.  Amex gave a noncommital comment that they do analyze shopping patterns.  That was it.

 

Overall, this is blown way out of proportion.  If you do all 10 of those things, and have crappy credit, it might push something over the edge.  If you have a 700+ score and do all 10 of those things, no one will care.  Don't buy alcohol?  I use my cc to buy wine all the time.  Before I got married, I always used my cc to carry a tab at bars/clubs. 

 

Also, where can you buy lottery tickets with a cc?  I've always been told that was cash only.


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Re: Based on CCC. What are your thoughts !


Walt_K wrote:


llecs wrote:

.....and used it paying for a ticket or two without issue.


 


...Also, where can you buy lottery tickets with a cc?  I've always been told that was cash only.



If directed towards me, I was referring to traffic tickets.

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Re: Based on CCC. What are your thoughts !


TheConductor wrote:

 

 

Someone who goes from spending $2000 a month at Neiman Marcus to only spending $200 a month at Target is going to look like someone whose financial circumstances have changed drastically.

 

 


If you can get my wife to make this change, I'll take whatever AA the CCs throw at me.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
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Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
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Re: Based on CCC. What are your thoughts !


llecs wrote:

Walt_K wrote:


llecs wrote:

.....and used it paying for a ticket or two without issue.


 


...Also, where can you buy lottery tickets with a cc?  I've always been told that was cash only.



If directed towards me, I was referring to traffic tickets.


No, general comment on the article.  I've never seen a place that will let you pay by CC.  I probably don't want to know if there are such places.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Valued Contributor
Posts: 1,228
Registered: ‎05-10-2012
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Re: Based on CCC. What are your thoughts !


Walt_K wrote:

jsucool76 wrote:

llecs wrote:

I don't think it's as big of a deal they make it out to be. I used my Amex all the time at Wally World, used it paying taxes, used it at spas, and used it paying for a ticket or two without issue. However, Amex hit me with an FR due to using it for legal fees, or so said the CSR.


The story about the people who got their amex card closed for shopping at walmart had a LOT more information than people care to say. The people also had a mortgage with a subprime lender that (from what I read in the article about that) was doing very badly, and I think the mortgage firm ended up collapsing or being bought out or something. That was the main reason amex closed their card. 


IIRC, it was also the person's belief that some recent charge at Walmart is what did them in.  Amex gave a noncommital comment that they do analyze shopping patterns.  That was it.

 

Overall, this is blown way out of proportion.  If you do all 10 of those things, and have crappy credit, it might push something over the edge.  If you have a 700+ score and do all 10 of those things, no one will care.  Don't buy alcohol?  I use my cc to buy wine all the time.  Before I got married, I always used my cc to carry a tab at bars/clubs. 

 

Also, where can you buy lottery tickets with a cc?  I've always been told that was cash only.


It's probably by state, although everywhere I've seen lottery tickets it has been cash only.  I agree with it being blown out of proportion.  High end AMEX users probably use their charge cards at the bar all the time, especially in sales for clients.  I think some of these purchasing patterns may trigger an FR, but unless your income changed drastically your card being closed seems unlikely.

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Established Contributor
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Re: Based on CCC. What are your thoughts !


Walt_K wrote:

TheConductor wrote:

 

 

Someone who goes from spending $2000 a month at Neiman Marcus to only spending $200 a month at Target is going to look like someone whose financial circumstances have changed drastically.

 

 


If you can get my wife to make this change, I'll take whatever AA the CCs throw at me.


Hahahaha!  Touche, my man, touche!

Starting: EQ 622 (myFICO 7/7/12), EX 696 (TU FAKO 8/14/12), TU 621 (CK TransRisk 7/24/12)
Current: EQ 684 (CCT 8/18/15), EX 706 (CCT 8/18/15) , TU 702 (CCT 8/18/15) Goal: 740+ x3
My Wallet: Amex BCP $30k, Chase CSP VS $12.2k, Amex Zync NPSL (> 10k), C1 Venture VS $6.5k, Amex SPG $4.5k, Chase Slate $3.5k, Barclaycard Apple V $2k, Chase Freedom V $1100, BoA Cash Rewards V $500
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Established Contributor
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Registered: ‎08-20-2012
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Re: Based on CCC. What are your thoughts !

WOW

Established Contributor
Posts: 504
Registered: ‎08-28-2012
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Re: Based on CCC. What are your thoughts !


TheConductor wrote:

 

Subscribing to one porn website on your credit card....pretty normal.

 


Speak for yourself... Smiley Wink

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