Sharing Daily Discoveries About Personal Finance And Business Topics

Your Credit Worthiness Based On Where You Shop

I was reading various articles today that talked about how when it comes to a credit card there are often multiple factors that determine whether or not the bank will give you a high credit limit. One thing that was surprising to me was that it was mentioned how where you shop for items can play a big factor in it. As an example, if one month you have been shopping in a dollar store it apparently can be a signal for the bank to deem you as a risk by assuming you now have no money and must shop at these types of places.

I always assumed that your shopping habits like these are being data mined. I never thought it would be used as a way to determine what kind of a credit limit you should have though. For me it`s kind of comical as I usually try to shop at the places which give the best value. Sometimes that happens to be a dollar store. In that sense this method of labelling people isn`t that accurate huh?

Although, it would make a lot of sense in some ways on how people that have thousands of dollars in credit card debt have credit limits within the tens of thousands of dollar ranges. It’s not uncommon where people abuse credit cards and shop at all the expensive places while paying the minimum only. Information like this makes me so curious on whether or not you can play around with your credit profile this way.

Does this make me want to change the way I shop? Not me personally. At the end of the day, how much you have left in the bank is more important and I would imagine things like paying your balance in full each month is a way more important factor for credit worthiness.

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