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!