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04-17-2013 10:04 PM
Well analytics are being used every day for everything so do i think there are stats kept on such things YES. do I think a cc company will close an account because I buy sheets at walmart NO. What they care about is do you pay on time. If you pay on time at least the minimum amount they don't give a flip what you buy.
Just my 1/2 a cents worth.
04-17-2013 10:07 PM
04-17-2013 10:14 PM
Some stuff I think credit card enthusiasts may enjoy reading. The reason I'm posting these is to show there is some "basis" behind some of the credit card purchase modelling so often discussed on these forums.
White Paper on data mining: ftp://22.214.171.124/ESWA_20120104/An%20integrated%20data%20mining%20and%20behavioral%20scoring%20mode...
General mainstream yahoo article on behavioral modelling - http://voices.yahoo.com/behavioral-scoring-credit-card-companies-revealed-2505838.html
04-18-2013 02:25 AM - edited 04-18-2013 02:25 AM
I also call BS. While the reasoning is somewhat sound, I don't think CCC's extensively profile like this based on where you use your card. Some purchases may trigger something, especially with AMEX, but overall you shouldn't worry about it.
I've used my cards for many of the things on that list and I've had no problems. I've paid large speeding tickets, lawyer fees, shop at discount stores (Walmart, Target, and Amazon account for 90% of my shopping), write BT checks to myself, charged $150+ bar tabs, paid medical/doctor bills, etc. all without any AA.
Use the cards and pay the bills, that's all they care about.
04-18-2013 03:54 AM
also to add...
if a bank is to review every single transaction like this........it's going to take a lot or processing power for its servers or manpower to actually churn through all these data.
from the number of transactions per day for a prime bank alone........this just seems economically unrealistic to dedicate so much resources just for this.
there's other much better and efficient ways to evaluate risk.
04-18-2013 04:57 AM
I had never heard before that using a card for a cash advance could get you a CLR or AA. That seems strange to me. I thought that credit cards made money off of fees and interest. They get lots of fees and interest from cash advances. It seems that I'm learning now that cards are making most of their money off of swipe fees and that they actually don't like customers who keep balances because the potential profit from interest is more than offset by people who carry long term balances propensity to just not pay back what they owe. And to the person who was distaining therapy, I don't see anything wrong with getting extra help if you need it. I can't change the way companies do business really whether I like it or not so in that case I guess it is good that I become informed about these things so I can act accordingly. Most of us on here are more educated than the average member of the public on how to have a good credit score and avoid a lot of these pitfalls. It would make no sense to ignore what we know to be true just to make a political statement. It is like shooting ourselves in the foot. I agree however that I seriously doubt most credit card companies are sorting through our purchases with a fine tooth comb trying to find a reason to deny us credit. I also would seriously doubt that anyone in the history of the world has been subject to negative credit implications because they got their tires retreaded. I suspect that is a figment of a columnist who needed a few extra words to fill up a pages' vivid imaginnation.
04-18-2013 04:57 AM
I'm not buying into the originial article. While, I'm sure that my spending habits are reviewed somewhere in order for someone to market to me, this article went so far as to say that the ccc's could actually lower my score because of those habits. Not likely.
On second thought, I do see people on here complaining that their FICO dropped for no reason. Hmmm, makes sense now. That bottle of cheap booze and girlie magazine you bought at Walmart is coming back to haunt you.
04-18-2013 05:24 AM