Don't put porn or taxes on your credit card
Credit card companies are clamping down on any consumer who suddenly seems like a financial risk.
But according to Robert Manning, author of Credit Card Nation, card companies are doing data mining to look at where we spend our money to determine if we might have lost our job or appear to be having money problems.
In an interview with Marketplace, Manning compiled a list of 10 things you shouldn’t buy with your credit card lest it send up red flags to your card company.
Among them:
Purchases at 99 cent stores or Wal-Mart, if you never shopped those bargain places before. From the card issuer’s viewpoint, it’s suspicious that you are suddenly a discount shopper.
Retread tires. What, you can’t afford new ones?
Porn or strip clubs. Are you trying to take your mind off financial problems?
Marriage counseling. Could it be that you are your spouse are fighting about money?
Taxes. Bad sign if you add debt on a card to pay off another debt obligation.
Check out the list and tell us what you think. Do you really believe card companies are scanning statements for such purchases?
Comments
This is the most worthless article I have every read in my entire life and was a complete waste of my time. Let's assume that credit card companies don't actually want risky, unreliable people to have their cards (which they obviously do). Are you really trying to tell me that someone is going to think twice about a consumer shopping at a humongous store like Wal-Mart? The bar thing is ridiculous also. They don't see an itemized receipt...they could just as easily assume that it was a meal. Horrible article.
Posted by: Justin | July 9, 2009 4:17 PM
That article is so ridiculous. There is really no reason to avoid any of those things. Maybe the paying off of other bills, but all the rest are inconsequential.
Is shopping at WalMart really gonna make the credit card companies think twice. Its the biggest store in the country.
As far as strip clubs are concerned, to me that shows that you have money to afford to waste on non essential items. That shows that your not doing too bad. I can see maybe a dump of one, but spending money at a high class strip joint shouldn't be a red flag.
Same thing with bar tabs. Bars provide some great business networking. If your picking up the tab, you must be doing okay.
I also have never heard of a place that accepts credit cards on lottery ticket purchases. That's always a cash transaction like a money order.
Article is a complete waste of space.
Those are great points! - eileen
I was at a grocery store this weekend and saw a machine where you can buy lottery tickets with a credit card. So maybe this could be an item for data mining by card companies - eileen
Posted by: Frank Fitton | July 10, 2009 12:48 PM
This whole concept of data-profiling creeps me out. How can this not be regulated yet? Makes me want to fall off the grid and just use cash.
Posted by: Carson | July 10, 2009 4:03 PM
What a joke this article is. Chase and Bank of America allowed my soon to be ex-husband charges for almost 57,000.00 in porn. Never stopped it once just kept increasing his limit. In one month he charged 14,000.00 on one card for porn. I guess when he gets caught at work and loses his job they won't get paid. I wouldn't feel sorry for them.
Posted by: b | November 25, 2009 10:15 AM