It’s no secret that credit card companies are using data profiling to decide which cardholders are risky and which ones aren’t. What do your spending habits say about you? Let’s scrutinize an imaginary credit card bill through the eyes of a credit card company.
If you’re spending a lot of time partying, credit card companies might take your alcohol consumption as a sign of stress – due to a job loss, too much debt, or a failing marriage. (Those are all considered qualities of high-risk cardholders, and your credit limit could be slashed because of them.)
Bills & Taxes
Paying other bills and even your income tax with your credit card is a troubling sign that you can’t come up with the money any other way.
Adult Services: Gambling and other 21+ activities don’t look good to credit card companies. These charges might be a sign that you’re trying to escape from your money woes. Surprisingly, spa services can also work against you for the same reason.
Therapy: In a trend that’s ruffled plenty of feathers, card companies are clamping down on the credit limits of people in therapy. Why? Most therapy revolves around money and marriage problems. Either of those could cause you stop paying your bills.
So what does your credit card bill say about you? It will paint a brighter picture if you can avoid putting controversial charges on your credit card.