Where you shop hurting your credit score?

[Cassandra]

Thrift Store Purchases Could Hurt Cardholders

What a person buys and where they buy it could have a devastating effect on a credit score, a WESH 2 News investigation revealed.
The investigation found credit companies may be looking at where a cardholder is shopping and determine an interest rate from there

Has anyone heard anything about this? This is the first time I've heard of it and I'm a little skeptical (but wouldn't be too surprised if it is true).

[disneysteve]

There was a report about this a few months ago. They were looking negatively at folks who were shopping at WalMart and other discount places, especially those in poorer neighborhoods. As I recall, it was even gas stations in bad neighborhoods.

[GREENBACK]

I think other aspects of your financial life have far more impact on your scores than making a few purchases in a bad neighborhood. If a person has to worry about this type of non-sense, they should take a look at their bigger picture.

[disneysteve]

I think other aspects of your financial life have far more impact on your scores than making a few purchases in a bad neighborhood. If a person has to worry about this type of non-sense, they should take a look at their bigger picture.

"AMEX is now cutting people's credit limits for shopping at the wrong store.

29-year old black entrepreneur Kevin Johnson, who has a perfect payment history and a high credit score, recently got a letter from AMEX cutting his credit limit. The letter said, "Other customers who have used their card at establishments where you recently shopped have a poor repayment history with American Express." Kevin couldn't tell what set it off, his statement had what he saw as normal transactions, including places like Amazon, Ruby Tuesday, WalMart, Starbucks and Federal Express.

AMEX defended its practice saying, "We're just doing this to manage risk...customers who make transactions with certain merchants tend to have a higher proportion of credit issues or a higher probability of default"

This is from February, 2009.

[Joan.of.the.Arch]

There are forum users here whose entire cities are probably considered "bad neighborhood." Oh, well...

I think I read not long ago that used car parts bought on credit can factor negatively into your credit assessment. Only shady characters would go to a car junk yard to buy a $1 clip to hold the interior door panel rather than spend $90 at the dealer to get it fixed.

[Cassandra]

"AMEX is now cutting people's credit limits for shopping at the wrong store. [...] This is from February, 2009.

WOW! I had no idea. I missed this article when it originally came out.

I wonder if my CC companies will do the same. I frequent discount stores and thrift stores.

[kork13]

AMEX defended its practice saying, "We're just doing this to manage risk...customers who make transactions with certain merchants tend to have a higher proportion of credit issues or a higher probability of default"

....of course, this finding is statistically flawed. Yes, more people who default use discount stores -- Amazon, Target, and so on. However, the number of people who use those stores are also much higher. It's like putting 10,000 people in a small room and expecting nobody to get their toes stepped on. Lunacy, and statistically reprehensible. This is very much a case of "massaging the stats" to get them to say exactly what you want them to say.

[swanson719]

Lies, Damn Lies, and Statistics... +1 for kork13...

[Confetti]

Lies, Damn Lies, and Statistics... +1 for kork13...

Studies show that 72% of statistics are made up on the spot.
Ever since my college statistics course, I don't believe a single one I read or hear unless they can show me their methodology. And chances are, it's flawed anyway.