Credit Card Behavior Scores

 

Credit Card Behavior Scores

Credit Card (Photo credit: 401(K) 2012

Credit Card Behavior Scores

Credit Card Behavior Scores

I find this incredible.  Large credit card companies commonly keep separate behavior scores on their customers according to a study conducted by the Federal Reserve in 2010.  There was an incredibly large total of 35 million instances in one month.  Only 1900 card holders actually saw a reduction in their credit score because of this.

And a Credit Card Behavior Score is….

What is a credit card behavior score?  It’s a private score kept by credit card companies, unavailable to the consumer, indicating whether or not they use their card in places that are looked upon with disfavor by the credit card companies. If you have any activities on the list below planned for the future you should always remember the Whitey Bulger philosophy when it comes to these matters: Ca$h leaves no tracks. 

Some Examples Measure by Credit Card Behavior Scores

These credit card behavior scores are kept on records that are completely unknown to the consumer.  Who has access to them?  They are used to help decide whether to raise interest rates, lower credit limits or even to keep or withdraw the card.  Such a practice is inherently discriminatory towards low income and minority creditors.

Cries Out for Legislation

I don’t like to see the government overly involved in financial matters, but this situation cries out for preventive legislation.  There is no end to ways for privacy to be invaded if the government sits by and lets it happen.  When the government is inactive that means it has given tacit approval to the industry practice.  I hope the Consumer Financial Protection Bureau is looking into this.  As far as I know the CFPB has been silent on this issue up to this point.

Payday Loan Warning
Some payday lenders run inquiries on your credit score and some don’t.  Don’t believe them.  They will tell you they don’t inquire and then do it anyway.  They all offer incredibly bad deals.

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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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