Is Credit Now Based On Where You Shop?

There are new methods that creditors are utilizing in order to determine whether you are credit worthy or not. Aside from your credit score, income, and amount of debt that you currently owe, creditors are now using a few unconventional and border line discriminatory factors to determine who is credit worthy.

Major banking institutions in the United states are now reducing credit limits, and closing accounts, for honest paying consumers based on where they shop! You heard me right, based on where they shop!

For example if you frequent Wal-Mart, Target and other discount stores you are considered a high risk consumer, and as a result your credit card company may reduce your credit limit or cancel your account altogether. In these tough economic times creditors are punishing you for being savvy with your money instead of rewarding you.

Many small business owners and every day people rely on credit cards for day to day activities and unforeseen expenses and they should not be judged based on where they shop, they should be judged based on their credit history.

An irresponsible college student will spend money at high end boutiques, and fancy restaurants before they realize that the money needs to be paid back, they are the highest risk customers. A responsible spender understands the value of the dollar and saves money where they can regardless of their financial situation and they should be rewarded by creditors. Credit card companies see it differently. In the eyes of these creditors if you cannot afford to buy high end products you do not deserve credit. Why is the credit system being reserved to the rich who do not need it, instead of being marketed to the hard working middle class that relies on it?

I personally shop at Wal-Mart, I make a good income, and I have very good credit. Is there anything in these three characteristics of mine that should render me as a credit risk? I believe the answer is no. Bargain shoppers are the people that should be rewarded not punished for their responsible actions. In fairness to the credit card companies they claim that they have statistics that prove bargain shoppers=bad credit or credit risk. Perhaps this is true but high end shopping can equal bankruptcy.

The poor and the lower middle class are not the only people that shop at bargain markets, every one does! Everyone purchases products on the Internet in order to save a few dollars. As long as a person has a positive payment history they should not be punished. Regardless of where you shop, if you are not consistent at making payments you should have your credit limit rolled back, or your account closed. However if you pay on time and as agreed all the time there is no reason for anyone to take away your right to credit.

That’s not all folks, creditors are now denying people credit based on where they live, and based on which lender supplied them with a home loan. If you live in an area where foreclosure rates are high you are considered a credit risk and you may be denied credit, or if you have a home loan with a company that has collapsed or a company that have given loans to a large number sub-prime consumers you are considered a credit risk and as a result you may have your credit limit reduced, or you may be denied credit altogether.

Why are creditors punishing consumers that borrowed responsibly? If you pay your mortgage on time why does it matter who supplied it. If you are paying $2000.00 monthly for your home does it matter if the lender is Fannie Mae or Bank of America? The correct answer is yes….unfortunately.

Creditors by law can set any standards they choose as long as they do not discriminate based on gender, race or religion. If a bank wants to discriminate based on who you have your home loan with, or where you shop they are sadly within their right. It is unfortunate and disgraceful that banks have resorted to such lows to isolate customers based on where they shop or where they live.

Stop Living with Bad Credit!