June 15,2009
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Ya Better Watch Out, Pt.1
They're watching you.Remember: "Just because you're paranoid doesn't mean they're not out to get you." They may not divulge it to the public (or even you) but nearly all credit card lenders track the categories of things you purchase with their credit cards. It's gotten to where your interest rate, spending limit, perks and penalties and most else that deals with credit cards is influenced by what you charge.
Most people think that category tracking is a good thing and provided as an extra-value credit card service. To some extent it is. Cookies are digested into your computer, special offers seem to show up along with your credit card statement that appear to be specially tailored to you. Sometimes they are. So, if you're married and have a secret life on the side, don't be surprised when your spouse starts asking you questions about why, all of a sudden, you start receiving a certain new type of advertisement in the mail.
As far as the credit card lending industry, millions of dollars (or more) have gone into behavioral research based on a person's spending habits. Nearly all of the major lenders study these traits seriously and not just for marketing. They're greater concern is predicting how much of a risk you might become to them.
The more you use the credit card and the longer you hold it, the more they learn about you. Not necessarily bad but, not necessarily fair either. People of excess (like spending too much on your pet) can show irresponsibility when other 'people expenses' are lacking. Spending too much on medication, though not disreputable, may indicate that medical expenses are overwhelming you.
No, the credit card industry not 'out to get you'. But, when it comes down to you or them where perceived risk is concerned, guess who's side they're on?