Shop at Walmart? Uh-Oh, Your Credit Score Has Just Been Lowered!
Written by: Kim Sawyer
If you haven’t heard, credit card companies are financially profiling you, and basing their analysis on where you shop. What does this mean for you? Well, if you shop at Wal-Mart, and use your credit card to purchase your items, the credit card company that you have your credit card with would surmise that you’re shopping at Wal-Mart because you (maybe) had a loss in income. So, if you initially had a credit limit of $10,000, due to your purchases at Wal-Mart, the credit card company will lower your credit limit to, say, $3,800! And, if you weren’t aware, when a credit card company lowers your credit limit, it negatively effects your credit score. You don’t believe this is happening? Read the reason that was given to an American Express credit card holder after the card holder made a purchase at a Wal-Mart in Atlanta and his credit limit was reduced: “Other customers who have used their card at establishments where you recently shopped have a poor repayment history with American Express.”
Now, I have to say the card holder only deduces that his purchase at Wal-Mart is the reason why his cedit limit was reduced because the credit card company will not tell him the exact establishments they were referencing. According to the card holder, his credit is stellar. Here is a list of the establishments he visited before the credit reduction:
Possible Bad Establishments
Air Jamaica
Amazon.com
Applebee’s (Gastonia, NC)
BP (Ashland, VA)
BP (Owner Aziz Dhanani)
Boston Market (Boston, MA)
Brinks Home Security
Cactus Car Wash
Chateau Elan Winery
Cheesecake Factory (Cambridge, MA)
Chick-Fil-A
Chicago’s Nancy Pizza
Citgo (Baltimore, MD)
Citgo (Greater American Food Atlanta)
Dave & Busters
D & K Clothing
Donor Town Square
Ed Voyles Honda
ESPN Zone
Exxon Mobile
Figo
Five Guys
Fogo De Brazil
Geisha House
Hershey Park (Hershey, PA)
Island Romance
K & G Men’s Store
Kyles Friendly (Greensboro, NC)
Leadership Atlanta
LeBlanc Plumbing
Mahogany Restaurant (Washington, D.C.)
McDonald’s
Moe’s Southwest Grill
Opera
Paschal’s Restaurant
Quick Trip
Quizno’s
Red Robin
Ruby Tuesday
Satellite Radio XM Sirius
ServPro
Sheetz (Boston, MA)
Sonsie Restaurant (Boston, MA)
Spirit Airlines
Starbucks
Swept Away Couples Resorts
United States Post Office
Walmart
Zales
* Establishments are based in the Atlanta, Georgia area unless otherwise indicated. National or international companies are not marked.
Looking at his list, it could be because he went to McDonalds! This is just amazing to me. So now, financial institutions can say just because you try to save a buck here and there, you’re a credit risk, therefore, the amount of credit given will be very minimal? So far, American Express is the only known credit card company to be practicing financial profiling. But, who’s to say the other credit card companies are NOT doing the same thing? All I can say everyone is be careful of where you use your credit card, and not just because you’re afraid someone will steal your identity!
Tags: American Express financially profiles it's customers, Shopping at Walmart could lower your credit score, The person next to you could cause your credit limit to be reduced
January 30th, 2009 at 5:12 am
[...] Shop at Walmart? Uh-Oh, Your Credit Score Has Just Been Lowered … [...]
January 30th, 2009 at 7:11 am
Ok really. Life is just getting ridiculous! There is always some new something that comes along and makes you feel the need to reroute your life and how you do things. Unfortunately, everybody can’t shop at the higher end establishments nor do they want to. And there are many, many people, who from the naked eye, seem middle class or even lower class with stellar credit, but who have gotten that way by being frugal, etc. Be careful where I use my credit??? Wow. One more thing to worry about but thanks for the warning.
I have said before and I will say again, I think I was better suited for the Little House on the Prairie days when life was so much simpler!
January 30th, 2009 at 7:32 am
Isn’t this crazy?! I am an avid Wal-Mar shopper. Why pay more money for something that costs less at Wal-Mart? I think if you have a credit card, and making your payments on time, you should be able to use your credit card whereever you want, but that’s just me.
January 30th, 2009 at 2:16 pm
I agree! And you should be able to do it without the fear of it damaging you/your credit. This is unconstitutional! This is encroaching on our right of choice!
January 31st, 2009 at 12:16 pm
If this is true, it could be considered a form of discrimination. The credit card companies are judging you based on where you shop, not how or when you pay your bills.
I have excellent credit. I always pay on time, and I don’t have any credit card debt, I pay the TOTAL amount EVERY month. If I see my score drop because of this, I’m going to be pissed. I work really hard to be financially responsible and I do not want a little thing like where I shop to ruin my perfect credit.
If people’s credit score drops because they like to shop at Walmart, the credit card and credit score companies had better expect a whole lot of people filing complaints because it’s just wrong!
January 31st, 2009 at 2:35 pm
Hi weezy333. Welcome to 7DayBuzz. That’s exactly what it is – a form of discrimination! So far, I’ve read only American Express practices this, but it only takes one before others start jumping on board, right?
June 18th, 2009 at 11:23 am
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