Beware: These stores could harm your credit!

Credit card companies have finally gone on record saying that they grant credit based on where a person shops –and lives if you haven’t heard that too.  I already knew, but I had to find out the hard way.  

The strange thing is that the companies won’t reveal what stores or “establishments” will negatively affect your credit rating.  An American Express spokesperson says that the reason they won’t reveal the information, in part, is because their “property risk model” changes frequently.  Does that mean every day, every week, every month?  I suppose they could alert me via e-mail just like they send me special offers to patronize, for example, Wal-Mart.  I think they just don’t want to reveal that information. It wouldn’t be good business to discredit (pun intended) a business partner that brings you millions in interchange fees.    

So, in the spirit of consumer activism, I suggest we call their bluff.  In the next few days, I will reveal the details of my bills and the bills of others who have been put on a tighter leash by lenders.  That way, millions of you, including the retailers themselves, can decide what stores are bad and which are good.  I would even encourage retailers on the list to make a phone call to American Express and verify their status as a good guy or bad guy, but those efforts may prove to be frivolous.  After all, their status could change any second.    

I’ll give you a sneak preview.  You may want to avoid Wal-Mart and instead shop at a high end grocery store or department store.  

Comments

[Candyce]

High Five Kevin!!! Thanks for outing American Express on their slickness. The same thing happened with me. My credit limit was lowered which then affected my insurance premium or so they say. God knows what else has been affected. All I know is, with this scathing economy no one can afford for things like this to happen. I have been with this card company for over 10 years with no problems. You would think that they would like to retain good customers. Do they have a retention department? I tell you it pains me to know that this card company received tax payers bailout money in the millions. Something has to been done. Look!!! I WANT MY MONEY BACK!!! Now!!! What do I have to do to get it?

[LTHW09]

Amex did this to me after I have destroyed other credit cards. I only keep the card for the same reason...to earn reward. I even have reword that are forfeited. I was going to close the account when I received the last cut-down but a staff at Amex that I wait till June for my reward to post.

[Re Highland]

This comes as no surprise. My insurance company denied some discounts because I reported a lost/stolen credit card. I was stunned. Credit card companies and FICO are allegedly inscrutable.

Using behavioural analysis is nothing new. That it's been allowed since the beginning, from the guy behind the desk to the software, is a problem that will not go away, until WE do something.

Stop using credit cards. Reduce their base. We are the ones who have given them power. If we remember that we are using them, then they can no longer use us.
Dispute their findings and use the power of the pen to keep them accountable.

[alimae]

Thanks for going public, Kevin! Also "thank you" to all the rest of you that have posted! Glad to know I'm not alone! :)

Michelle, Citicorp did the same to me...raised my interest rate to 16.99% and I've never been late. I guess that is how they planned on paying for their new jet. Now that the jet has been axed (Thank you, Mr. President :) I wonder if they will lower our rates...Yeah right! Their reason in my statement for the increase was so they could remain profitable!

RE: CHASE BANK They took away our line of credit on the house. They said our home is worth $50,000 less than it was a year ago. (?)

Watch out for those BALANCE TRANSFER offers too! I did a balance transfer and now if I want to use my credit card again, I will pay the most current interest rates and the NEW and or CURRENT BALANCE amount will continue to incur interest UNTIL THE BALANCE TRANSFER AMOUNT IS PAID OFF! Any money I send them will go to the lower interest rate account and the higher rate purchases will just continue to incur interest...DO THE MATH! That new purchase will cost you a small fortune.
I was also informed that the interest rate on the BALANCE TRANSFER COULD INCREASE! A woman told me the bank could do whatever they want, whenever they want. Yet our savings account (what is left of it) has a lousy interest rate. HOW CAN THE BANKS GET AWAY WITH THIS? Why don't they really point out all the "fine print". If they wanted us to know, why can't they make the print LARGER so we could read it without a magnifier!

Also I paid the credit card down to a ZERO balance before doing the Balance Transfer. I contacted Chase Fraud Detector to cancel their services so I would not have any new charges on the account. They continued to charge me but agreed to remove the charges after I called them again. However, they NEVER removed the charges, so that $25.00 (3 months of billing)or so that is still on my account with interest being added to it every month! I called CHASE and they said in order for me to pay off that balance I have to pay off the BALANCE TRANSFER first. (which is going to take me about 3 years!) Gee, I wonder what that $25.00 is going to be in 3 years! I wanted to pay CHASE FRAUD DETECTOR directly rather than having it charged to my credit card and they refused. What a ripoff!

Our credit reports are spotless. 42 years of bills paid on time and almost always, we've paid more than the minimum amounts. We have sacrificed a lot of the finer things in life, took only two mini vacations in our lifetime, lived within our means, bought and paid cash for USED cars, and kept our home in good shape. Now I'm on disability, no equity or usable credit, 401ks and IRAs in the dumpster, being told we owe more than our home is worth (due to a refinance to help our daughter with medical problems 2 years ago)

Now I wish I would have thrown caution to the wind, bought the bigger, expensive house, driven that fancy new car, taken that trip to Hawaii and lived beyond my means. At least I would have the memories of the "good times"! Being conscientious, honest citizens has gotten us nowhere! I honestly don't know where we go from here.

Oh, and by the way, I've ALWAYS shopped the "discount" stores and I resent the banks clumping me in with people who don't pay their bills!

I sure hope things change in the future for my grandchildren!

God Bless America..We sure can use it :)

[Liz]

Listen. This is not about any one person. Lookup Andrew Kahr. The credit card companies have a long history of tricks, this is just their latest. Ethics has gone to the dogs. They are now cashing in on what we have paid to our government. Stop them now.

[dh]

I saw your story on GMA. It was very interesting until you and Chris slammed Walmart. That was when your report turned me off. On your website, your last sentence on your January 8th post was also interesting suggesting folks go to a high end grocery store or department store. Don't your realize that folks of all economic backgrounds go to Walmart to get the most bang for their buck? In these tough times, Walmart is a true blessing to everyone.

[Wayne]

Not surprised at any of this! Credit card co.'s are just as greedy as the rest of the world. Oil Co.'s, CEO's of all major company's, Congressman and women,
Banks, Insurance Co.'s, Auto mfg's., you name it and it's full of greed. The sad thing is greed was at one time looked down on and people would boycott or raise so much stink over this that they would be shamed out of business. At one time being a congressman was an honor. Now it only means you paid off or threatened more people or promised more favors to people. Very few are honorable any more.
You don't have to believe me just look back in time at when this started and with half a brain it's as clear as crystal.
When we started removing prayer and Christ from everything, we lost and are still losing MORALS.
The sense of right and wrong is steadily changing.
Few if any today can remember when a handshake was
all that was required to seal any deal. It was a mater of honor.
It had a psychological rather than physical or tangible effect.
Liberalism is destroying us.
Like it or not the more we separate ourselves from
prayer and the Bible the worse it is going to get.

[Veronica]

I saw the GMA report on ABC I commend them for airing the dirty laundry of this credit card company. I too was recently cut off credit from this company for which I had 7 year history with. I paid my bills on time. I wonder if this could be a racial issue. I am a African American Woman. I am very disappointed and hurt by their decision. I use to admire and honor this company. No longer I will never except another card from them again. Keep the story circulating. The more money Congress is giving these companies the less they are servicing the American people.

[Liz]

Wake up America. If you use plastic they are out to rob you of everything that you own. Thieves are in charge, they have destroyed the economy and they are out to destroy each and every one of you. Buyer beware! Go green and be free of thieves.

[Melissa]

I've never shopped at high end stores, and I won't let the credit card companies tell me I have to now. Smart people shop at Wal-Mart or "lower end" establishments because they want to get the most for their money. Smart people (if they are financially able to) might start thinking about using less credit and more cash. I won't be bossed around by my credit card. The website is great Kevin. Really appreciate it.

[jbarry]

To begin with, thank you for taking the time to create this website. We need it.
Recently, Citi Bank raised my interest rate to 16.99%. I have had a card with them since 1989. The interest rate I had back in 1989 was 14.99%. The rate went down to 10.99% and then down to 5.9%. I've never missed or been late on a payment to them. So, for no reason at all Citi upped my rate 11% for no reason. When I asked why, Citi's customer service representative said, "it's not the account, it's not you. This is our new business model."

[Michelle]

I just saw this story profiled on GMA. I knew credit card companies were evil and resort to some ridiculous measures to make money but this is just plain stupid. In this weak economy why are they seemingly trying to lose their good customers? I recently had my credit limit slashed on a card that had no balance and where I had made timely payments. I've since closed the account altogether. I have no desire to do business with a company that is cutting off its nose to spite its face.

[Melvin]

Ha! I've actually had this conversation before, so it's funny to see it typed out. I can't wait to see how this conversation goes on this site.

[Garry]

The situation doesn't really surprise me either, but I must say that I was a little surprised that credit card companies think this is perfectly ok.

[YIW]

While this doesn't surprise me in the least, I am glad that it is coming out of the shadows. The saddest part in all of this, is that if these greedy companies would wake up and smell the coffee, they'd begin to find a new business model that would not only help to salvage this mess; but would also benefit the people as well. When are the "powers that be" going to get a clue? Their greed is causing more of the economic decay. This will unfortunately get a lot worse before it gets better.

[james]

So I guess Amex is telling customers that if they want to keep their credit score stable, we need to frequent higher-end stores like Nordstroms, Saks, and Whole Foods, spend much more money while dealing with falling incomes and the risk of job loss--and exacerbate the credit problem that started this in the first place. Makes sense to me.

I hate Credit Card companies and banks. And I used to work for both of them. Their greed is unfathomable, yet they go to the government like paupers, begging and groveling for our tax dollars to help.

[FB]

"Negative establishments"? Hilarious. Since when is a multi-billion dollar company---that is so successful that all of its heirs are on the Forbes list of 400 richest Americans all at the same time, all at the top---a negative establishment? Because of the people who shop there? Anybody read "The Millionaire Next Door"? Even rich people like inexpensive stuff and there are Wal-Marts in nice neighborhoods. Another typical PR gaffe that these creditors will pay for later (or maybe sooner with Johnson Media on the case). And Wal-Mart should be furious. What a slight to their brand. Ugh!

[upset w/ credit cards]

Wow. This is so interesting... and scary. I know there can't be many people who are aware of these shady practices by credit card companies. I wish there was a way to get my hands on this list of "negative establishments" that the companies are referencing.