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I let's talk about your credit -- score in your credit score right now -- you know that where you shop can actually affect your credit rating it's true you can actually pay your balance on time every month.
Have stellar credit and companies can still lower your credit limit based on the financial history of your fellow shoppers here to give us the inside scoop on this and many other things.
About your credit card company is that Jerry get -- credit adviser with that credit dot com and author of stop debt collectors good morning to you by Jerry.
Good morning I was shocked by this story first of -- how in the world so their credit card companies who are saying likely you shop at Wal-Mart.
I'm based on other people who shop in your neighborhood on the lower your credit score how is this happening.
Yeah they're monitoring consumers' credit histories and are looking for every way they can predict breast.
And the problem is you don't know you don't know if the places you shop are considered risky or that people are paying their bills.
And that could affect your credit limit even again even if your credit score is stellar okay let's go through some points here and help us out here because you talk about behavioral analysis what are they doing to actually studying your behavior in a way.
And they're giving you like a behavior score based on your shopping habits.
And that's exactly what they're doing it's not happening the credit bureau level it's happening that the lender levels they're watching where you shop.
And they're saying look you're shopping at places where -- consumers shop we're gonna Kutcher credit line.
Some cases they even close credit lines altogether but working lots of complaints to credit that come from consumers who have had their credit line lower.
Or their credit card just canceled out right and again these are people sometimes have very good credit scores that now people do have the power to negotiate a credit cards is that right.
You do you mean there's a couple things that -- that man number one -- remember these things happen at a macro level is -- to consumers affect -- appear credit line goes down your interest rate goes up.
Get on the phone and see if you can't get your interest rates down.
The other thing you want to do -- have a backup card this is more important than ever.
Because again you don't use that card you don't want to figure in your drawer somewhere you haven't touched in six month.
They may close it out for in activities of dusted off used it from time to time.
So you have a card to fall back on race the one you're using changed her spoken out you can't make your full payment lot of creditors pool I guess except less than the amount you can actually call in the -- to negotiate with them.
Yeah it's getting really interesting and they don't like to talk about this but if you start falling behind you this is someone enough hardship situation not someone who can afford to pay the bill and fall.
They will let you settle often firm may -- fifty cents on the dollar and thirty cents on the dollar depending on your situation but again you'll have to fall behind first before that you get that offer by Gerri great points who we're out of time unfortunately but a lot of great stuff go to credit dot com for more information on this jury that was thanks for joining us this morning.
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